any one got a feelling in their water how far LLoyds will go looking to to buy but just dont know when they are low enough

Hve just found some of todays text from Sandy Chen, see below.

Sandy Chen, an analyst at Panmure Gordon, said, at current share prices, Lloyds would be buying about 20bn of shareholder equity for less than 5bn, resulting in 15bn of negative goodwill.

Under accounting rules, this would need to be recognised immediately on the newly created banks income statement and allow further writedowns to be taken.

In our opinion, what this would represent immediately is effectively 15bn of post-tax capacity to recognise negative fair value adjustments, said Mr Chen.

From a rough perspective, we think this negative goodwill would enable Lloyds HBOS to immediately address a substantial portion of the writedown issues in the HBOS toxic assets and mortgage portfolios, he added.

Mr Chen's view does not change anything the proposed merger is a bail out of HBOS by LLOY. It is quite clear that HBOS cannot survive without either LLOY taking them over or HMG will have to repeat the NRK exercise but on a vastly bigger scale which would probably be unacceptable to voters.

Mr Chen is talking about creative accounting using the Inland Revenue (us the voters) to ultimately pick up the tab.

As a LLOY shareholder I object strongly to this proposed deal, if the directors of LLOY had my and other shareholders interests at heart then they would wait for HBOS to be dismantled and then offer to buy some of the profitable parts of their business and not try to join a "drowniing man".

100% agree Halifax, I couldn't have put it better myself.

Lloyds small shareholders are being shafted big time.

The AGM will be well worth attending for entertainment alone any idea when it is ?

Next AGM is 8th May, but I would have thought there should be a EGM which should produce some fireworks.

Yes it may be a great opportunity to ask (LORD) Daniels why he is ignoring his shareholders and possibly his customers views... I think we already know the answer to that question.

I'll get some nice rotten tomatoes that the slugs didn't munch through in readiness!

thicko here asks, "If the t/o does not proceed, am i not correct in thinking that HBOS will be nationalised and therefore the shareholders will get zilch? ..... if that is true, then HBOS shareholders should be thankful to get anything, albeit that LLOY will have picked up a diamond for half-a-crown"

I'm sure thats right that hbos would be nationalised if the takeover fails, because the Government would have a majority shareholding. Unless another bank wants to take them over, unlikely imo.

seems that the boys have been able to get the sp nicely above the clawback price and the Board will be hoping for a good take up by existing investors. The less that the Gov acquires, the better from the point of view of paying off the preference earlier and thus resuming dividend payments. This will all help short term sentiment.

Even though I would have rather have seen lloy exit this takeover, I will take up my allocation of shares at 173.3p. The more shares holders take up, the less of a holding the government will have. If anyone has doubts to how the government could dictate to the board the way they run the company, then the threat from the French government the their banks yesterday should act as a warning.

French government have said that unless the banks lend more money to business in need they will take their stake away, which is between 5 and 10%. I agree that banks need to support good business, but this could be a early indication to the direction the UK government will take.

It seems to me that too many businesses expect their bank to provide what in reality is equity funding (i.e. risk capital) to fund losses rather than working capital lines covered by current assets or loans for capital expenditure secured on the fixed assets acquired. Political interference will be a nightmare and likely make it worse.

LLOY is a BUY.

I note that lloy have been strong this morning up to 222p at one point and hbos have been slightly negative. Both banks are showing strong buys against sells, so investors could be buying in to take advantage of the offer at 173.3p.

Or could it be a hedge fund like Paulson closing some shorts on lloy, they recently closed some from 1.76% to 1.67%. I think I read somewhere the rules changed last week from updating the market each day, but unsure of the new timescales for reporting.

I can't find any new information, maybe I dreamt it.

Anyone know.........

What puzzles me we are doing the govt a favour and they are responding by lending us money for a fixed 5 year term @ 12% in addition in their stupidy they are stopping our dividends ... the only [main] reason for many of us and pension funds to hold.

I and surely many others would be very happy to loan LLoY @12%. instead of zero in current shares .... do the govt think 12% will be easier to repay than for instance the 5% considered by the US govt a suitable rate in similar consequences.

If I had wanted this hotch pot investment there are miriad opportunties on the LSE.
... In sorrow I can only suppose that our board have had a collective ......
"Senior Moment".

ah but IN THE USA the deal I think allows the government to put A CAP ON MANAGEMENT (PAY ETC)

surely that would help us poor shareholders!

anyone know what time the vote result is expected today? is it pretty much a foregone conclusion that they will proceed with the proposed T/O of HBOS?

Alex

134p for a Lloyds share !, who would have believed it 2 or 3 years ago ?.

At 134p the market is saying the only way it can what it thinks of this takeover.