The Times reports that Prime Minister Gordon Brown is personally fighting to save the proposed rescue of HBOS.
HBOS lost more than £1 bln of its value Tuesday as shares fell by around 20%. The worry now is that Lloyds TSB shareholders will move to block the rescue deal on its current terms. The stockmarket is now valuing HBOS at 35% less than Lloyds is offering in its own shares, so Lloyds shareholders certainly have a case. The vote on the deal is two months away and will need a 75% approval from Lloyds TSB shareholders. Poor old Gordon, he isn’t having an easy time of it.
