Lloyds TSB shareholders back HBOS takeover

Lloyds TSB shareholders today backed the proposed takeover of ailing rival HBOS.

The shareholders voted 95.98% in favour of the controversial deal at the Lloyds TSB Group general meeting in Glasgow.

They also backed plans to raise a total of £5.5bn (€6.5bn) through the issue of new shares and special preference shares to strengthen Lloyds’ balance sheet.

If the merger gets the go-ahead, it will create a banking giant with around 145,000 staff and 3,000 branches across the UK and Ireland.

The vote was comprised of the electronic vote from the majority of the 372 shareholders at today’s meeting.

This was added to those who cast their vote by proxy.

Paper votes on the eight resolutions, all of which were approved, are being counted and the full results of the polls will be announced to the Stock Exchange later.

Lloyds TSB chairman Victor Blank said the result of the vote was an “important milestone” in the history of the company.

“This is an overwhelming endorsement for the logic of this transaction,” he added.