Anybody think Lloyds will bail out, or not be able to continue with HBOS takeover

heaven forbid! .... by the way, your Freudian slip should surely have read cobble, though i am sure some of the redneck renegades will get truly clobbered

Yes cobble it should have been, I should proof read my threads after a few glasses of wine. I think clobbering those idiots would be too good for them, hung strung and quartered.

lloy down 5% to 205p and hbos down 11% to 128p a few moments back. But using the takeover ratio of 0.83, hbos should be at 170p, the difference is growing each day. Are the markets now having doubts to the deal going through.

I'm sure Government will do everything in there power to keep it on track, but there may come a point when the short term threat may become to great for lloy.

Cant see Lloyds backing out of the best deal in the 21st Century - The government will probably throw sweetners in as well - But in these markets I suppose anything could happen. Banco Santander would rather have Hbos than AL. so no fear of a take-over not going through eventually. The Yanks will sort themselves out before Friday and everybody will be buying banks like madmen, then next week another twist...........

I hope you're right and those madmen start buying, the strange thing is that the gap has widened even further now, with lloy at 225p and hbos at 123p now. For the brave investor, buying hbos now would give many more lloy shares when the deal is/if passed. The correct ratio should be lloy = 225p and hbos = 186p, but the market is still to be convinced.

I been out walking the dogs but, my wife tells me from the news on TV that Lloyds is looking at the take over terms again which probably explains the widening between share prices spitfire43 mentions above. Lloyds appear to be in the driving seat.

was on bbc1 news.......mr.peston says the deal will NOT be changed........so hbos i imagine looking cheap this morning for the medium term

Correct Haggis. Lloyds say deal is still on same terms

under the old formula, i calculate that with LLOY at 227 (as now), HBOS would have been valued at 188 ...... HBOS is currently 128, so make of that what you will, always bearing in mind that there will always be something of a discount to cater for the time element involved


what's your take on this scotty?

hi cynic

i think in medium term say 2 to 3 years this is very cheap sp right now.......its ironic that city boys knocked hbos sp down last year on results day as they said they hadnt increased mortgage stuff / housing.....when their results were very good.

if you are day trading etc then best of luck as sp is all down to rumours every few hours it seems

greetings to my black clubman

Financial News
Tuesday September 30, 01:34 PM
HBOS plunges on Lloyds rescue doubts
By Lee Wild


LONDON (ShareCast) - Fears that Lloyds TSB may re-price its 12.2bn bid for HBOS (LSE: HBOS.L - news) helped shares in
the Halifax owner tumble by as much as a fifth on Tuesday.

Lloyds, which saw its value fall by 11% earlier today, agreed an all-share offer with HBOS less than a fortnight ago worth 0.83 Lloyds shares for every HBOS share held.

At 192.5p, the lowest Lloyds reached this morning, the deal values HBOS at less than 160p a share. Lloyds is now up to 225p, pricing its offer at 187p.

But HBOS has been struggling all day and, although its shares have halved their earlier deficit, they're still trading at just 127p.

Prime Minister Gordon Brown is said to have encouraged Lloyds chairman Victor Blank to approach HBOS, leaving many doubting the deal will fail, but others believe the ongoing financial turmoil might give Lloyds a good excuse to renegotiate terms.

Lloyds TSB shareholders are said to dislike the big exposure HBOS has to the wholesale money markets, potentially damaging a generally more cautious Lloyds.

Three-quarters of them must back the takeover when they vote late next month or early in November (Frankfurt: A0S9N7 - news) in order for the deal to succeed

yes its up to shareholders......i think a lot of people have forgotten that.

mr.peston seems in the know and assured less than an hour ago on tv news about deal......remember he was the one that came out with breaking news on deal which should have been hush hush.

I think Banco Santander should step in - Offer more, drop AL. bid, and really set the cat among the pigeons !! And in these crazy times NOTHING would surprise me. BS were pissed that they never got to make an offer in the first place - Watch this space !

i knew a guy in hbos last year that told me BS would get hbos and this was before the financial collapse this year........unfortunately i aint seen the guy again as he has moved to another branch.

hbos is dead cheap now.....plus BS have all the deposit money from BB. as well now to use

To be totally honest another bid from another source wouldn't be a bad thing all round - it could kick start a buying rally once again and bail the Government out the s*it. An earlier post said if they knew the bailiffs were knocking on the door they would be willing to renegotiate - well so would other buyers as well, personally if you tried to renegotiate with me I'd strip the house and burn the thing down first. Hope they dont do that - not till the firemen strike anyhow :-)

snp government will also prefer banco taking over as its foreign

Can see Hbos rallying back in last half hour - Just topped up so hope I'm right ! Just been reading other threads and snippets of news and gave me the distinct impression they are quite a good bet.

Out !! That cost me few quid though ! Still fancy them to bounce back but no way leaving any banking position open overnight. I'd rather take a loss on the day - Oh well you cant win them all :-(

why did you not hold? ..... they're cheap enough and in fact have been all over the place in last few mins - low about 119 and back up to 124

No Chance, not in this market - I really do think they'll come storming back .... when is the question, news tonight can swing it either way - might be able to buy back cheaper in the morning again, maybe not, but they will come back. Cant see Lloyds being allowed to renegotiate a deal at all. Only way it wont go through is shareholders vote against it - and if you offered me a company for less than half it was worth I'd snap your hand off, any shareholder in their right mind must be able to see they have got the deal of the century. But saying that I didn't see B&B being raped like it was !!