The acquisition of HBOS was a “unique opportunity” for Lloyds Banking Group and regarded by its directors as in shareholders’ best interests, the high court has been told. Davies told Mr Justice Norris that Daniels owned 300,000 shares in Lloyds and that the decision to proceed with the HBOS takeover, which was announced days after Lehman Brothers collapsed in September 2008, was a collective board decision. The deal represented a “unique opportunity” because before September 2008 it would have run into problems with the competition authorities, said Davies. Before Davies began, Richard Hill QC, for the shareholders, had said that Merrill Lynch, advisers to Lloyds during the deal, garnered fees of £11m for working on the takeover deal. Hill said that in December 2008 – after HBOS issued a profits warning to the City – the Lloyds board had taken advice about pulling out.

Source: The Guardian October 19, 2017 18:34 UTC