mast image

Special Report

Impact investing

Sections

HBOS trustees drop Lloyds merger objection

Related images

  • HBOS trustees drop Lloyds merger objection

Related Categories

UK - The trustees of the HBOS Final Salary Pension Scheme (FSPS) announced today they will drop plans to delay the bank's takeover by rival Lloyds TSB until they received a funding guarantee for the scheme.

The trustees said they had met with Lloyds and their advisers and decided to reconsider the decision to ask the Court of Session in Edinburgh to postpone approval of the scheme of arrangement relating to the Lloyds TSB acquisition of HBOS.

In a statement, they added they do not want to jeopardise the capital raising programmes that have been planned by HBOS and Lloyds for next week.

"Having carefully considered the representations made by Lloyds TSB about the potential repercussions of any delay, particularly on the planned capital raising exercise which is due to commence on January 15, 2009, and in view of helpful statements made by Lloyds TSB to the trustees in the course of the discussions, the Trustees have decided that it would be in the best interests of all concerned not to proceed with legal action," read the statement.

They added: "We believe that the actuarial valuation process currently underway will, in due course, deliver the necessary security for the scheme and its beneficiaries, and look forward to further discussions with Lloyds TSB."

That said, the trustees are adamant they still have not received "satisfactory proposals" of support for the FSPS from the parent company of the enlarged group.

Therefore, they remain committed to pursuing an actuarial valuation as at December 31, 2008, and continue with a review of the scheme's investment strategy.

The trustees said they have been advised that the valuation could give rise to a deficit of between £3bn and £5bn.

If you have any comments you would like to add to this or any other story, contact Carolyn Bandel on +44 (0)20 7261 4622 or email carolyn.bandel@ipe.com

Have your say

You must sign in to make a comment

IPE QUEST

Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2548

    Asset class: Fixed Income, Emerging Market Debt Hard Currency (Active).
    Asset region: Emerging Markets.
    Size: CHF 300-400m.
    Closing date: 2019-07-30.

  • QN-2549

    Asset class: Fixed Income, Emerging Market Debt Hard Currency (Passive or Passive Enhanced).
    Asset region: Emerging Markets.
    Size: CHF 300-700m.
    Closing date: 2019-07-30.

  • QN-2550

    Asset class: Fixed Income, Emerging Market Debt Local Currency (Active).
    Asset region: Emerging Markets.
    Size: CHF 250-350m.
    Closing date: 2019-07-31.

  • QN-2551

    Asset class: Fixed Income, Emerging Market Debt Local Currency (Passive or Passive Enhanced).
    Asset region: Emerging Markets.
    Size: CHF 250-350m.
    Closing date: 2019-07-31.

  • QN-2552

    Asset class: Fixed Income, High Yield (Active).
    Asset region: High Yield (US).
    Size: CHF 500-600m.
    Closing date: 2019-07-29.

  • QN-2553

    Asset class: Fixed Income, High Yield (Passive or Passive Enhanced).
    Asset region: High Yield (US).
    Size: CHF 500-1'100m.
    Closing date: 2019-07-29.

  • QN-2554

    Asset class: Global Real Estate (Equity, unlisted Funds).
    Asset region: World (ex-Switzerland).
    Size: CHF 200 mn (potential for further growth).
    Closing date: 2019-08-07.

  • QN-2555

    Asset class: Real Estate.
    Asset region: European.
    Size: EUR 50 - 100 million.
    Closing date: 2019-07-22.

  • QN-2556

    Asset class: FX Hedging.
    Asset region: Global.
    Size: Mandate size of CHF 1.5 bn.
    Closing date: 2019-08-09.

  • QN-2557

    Asset class: All/large Cap Equities.
    Asset region: China A-shares.
    Size: Unit linked platform (0m USD in initial investment).
    Closing date: 2019-08-01.

Begin Your Search Here
<