Monday, 16 October 2017

Lloyds Banking Group snubs £500m settlement bid as HBOS merger trial kicks off

Lloyds Banking Group has rejected a last-ditch bid to settle a legal claim over the disastrous merger that created Britain’s biggest high street lender, days before a trial featuring some of the country’s most prominent financiers is due to begin.
Sky News has learnt that the Lloyds Shareholder Action Group (LSAG) last week told the bank that it would abandon its claim in exchange for a payment of roughly £500m, according to insiders.
Sources close to Lloyds said on Monday that the offer from Harcus Sinclair, the law firm acting for the claimant group of 6000 former Lloyds TSB investors, was immediately rejected by the bank.

The prospects of a further settlement proposal being tabled before the trial is due to start on Wednesday are "slim", said a person close to the situation.

The action group is reported to be seeking damages of about £600m.

The absence of a pre-trial deal would mean that former Lloyds executives including Eric Daniels, the chief executive who steered Lloyds TSB through the merger, and Sir Victor Blank, the then chairman, will be among those cross-examined as defendants.

SKY         News.

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