Lloyds TSB’s takeover of HBOS received another boost yesterday when M&G, one of the largest shareholders of both banks, announced it would vote in favour of the deal on its current terms.

The move makes M&G the second large shareholder to throw its weight behind the deal and eases concerns that Lloyds TSB shareholders might force the bank to renegotiate or abandon the takeover.

M&G said it was stating its intention publicly to remove uncertainty about the deal and to help restore stability to the market.

Financial Times