The takeover of HBOS by Lloyds TSB was approved after HBOS received the support of its shareholders.

The takeover was backed by Lloyds shareholders in November and, although support from HBOS shareholders was widely expected, it was officially decided at a meeting at the NEC in Birmingham this afternoon.

HBOS said in a statement: ‘HBOS welcomes preliminary voting indications received from HBOS shareholders prior to the meetings which show overwhelming support for the transaction, prior to reflecting votes cast in the meetings.’

Meanwhile, HBOS this morning warned that its bad debts and other losses, including property, this year had jumped by two thirds in just two months to £8bn this morning, just hours before the vote on its takeover.

Investors were unimpressed with the £8bn charge, sending shares in Lloyds TSB down 17% to 131.2p and HBOS 23% lower to 67.8p..

In a trading statement released today, HBOS, which is one of two major lenders to UK property, said its impairment charges and bad debts had risen by £3.2bn since the end of September.