HBOS Shares Rally Well as Backers Express Confidence in Lloyds TSB Merger
HBOS shares have rallied for the second day running as investors express their confidence in the Loyds TSB merger deal, with the backing of Prime Minister Gordon Brown. After dropping by 20% on Tuesday the share price has gained 21% yesterday and another 10% today.
LONDON (Reuters) - Shares in HBOS Plc (HBOS.L: Quote, Profile, Research, Stock Buzz) jumped over 10 percent on Thursday amid mounting confidence its proposed takeover by Lloyds TSB (LLOY.L: Quote, Profile, Research, Stock Buzz) will go ahead as several big investors backed the deal.
M&G, the sixth largest shareholder in both HBOS and Lloyds, said it supported the takeover under the original terms agreed.
Anthony Bolton, president of investments at Fidelity International and one of Britain's top performing fund managers for two decades, also supported the deal, although Fidelity -- also a top shareholder in both banks -- said those were his personal views and declined to say if it supported the deal.
"My personal view on this is that it will succeed and it will go through on the original terms, and I think most parties would like it to succeed on that basis," Bolton told BBC radio.
By 1445 GMT HBOS shares were up 14 percent at 169.3 pence, the top FTSE 100 stock .FTSE, narrowing the discount of its shares to Lloyds' offer price to 23 percent.
Lloyds shares were up 6 percent at 265p, valuing its all-share offer at 220p.