Trustees of the HBOS pension scheme are considering asking a judge to set aside the bank’s proposed acquisition by Lloyds TSB until 'appropriate arrangements' are made to guarantee that the merged banking group will stand behind the fund, which has an estimated shortfall of £3bn-£5bn.
The trustees will meet on Friday to vote formally on whether to press ahead with a legal challenge to the Scheme of Arrangement proceedings on January 12, expected to give formal approval to the merger. The deal’s structure thus gives the trustees an opportunity to mount a legal challenge that they would not have if the deal was simply structured as a takeover.
Financial Times