Brown dismisses rival bid for HBOS

Gordon Brown today dismissed calls for Lloyds TSB’s takeover of HBOS to be scrapped – insisting it was the only “serious” bidder.

Despite reports that the Bank of China was in early talks over backing a rival offer, the Prime Minister said there was only one “realistic” option.

Mr Brown’s comments came after two senior bankers voiced opposition to the deal, claiming it would be bad for shareholders and reduce competition.

George Mathewson and Peter Burt – former chief executives of Royal Bank of Scotland and HBOS respectively – have asked to be put in charge instead.

But the premier told his regular Downing Street press conference: “The problem is that apart from Lloyds TSB no serious bid that is funded has actually come forward.

“There has been no announcement by any financial institution that it is prepared – apart from Lloyds TSB – to take on the problems as well as the opportunities of HBOS.

“I think people have got to be realistic about that.”

He added: “It is not going to change much if one person says he wants to, or they want to, take over a bank if they have got no money behind them. And that is the issue we face at the moment.”