Senior executives of Lloyds TSB are on the road talking to institutional shareholders this week about the move to acquire HBOS, the UK’s largest mortgage lender.
Lloyds will this week start detailed work on how the two banks might be integrated and work out the expected timetable for the acquisition. The deal is expected to be completed in about three months.
Lloyds has not given any indication of assets that might be disposed of, although yesterday analysts speculated that it could potentially sell HBOS’s Clerical Medical or Scottish Widows, its own life assurance operation.
There are already signs that some institutional investors, including Schroders, are unhappy. However, most appear resigned to the deal happening as a counterbid looks less likely.