Kashif’s Blog

Our group (Lloyds TSB) chief Executive Eric Daniels announced this morning that Lloyds TSB has reached an agreement to acquire HBOS.

He said:

“We will now start a process to complete the acquisition which will include securing shareholder, regulatory and other approvals, with a target to complete the acquisition early next year.

What I can also tell you this morning, is that our acquisition of HBOS is completely aligned with our strategic aim to build the UK’s leading financial services company. We have focused on growing sustainable earnings streams, based on deep customer relationships - and this deal fully supports these ambitions. For our customers, it is business as usual, the same applies for HBOS customers.”

This news was welcomed as a great future for the TSB group and everybody was happy in our company.

Yesterday night there were some rumors in media that does TSB has such a position to buy HBOS which is much bigger than LTSB but it has happened.

HBOS shares were already fell by 70% in the market and that’s why LTSB bought each share for 322p as compared to the shares last month price 967p.

 LTSB has also mentioned that there still will be a great job loss in HBOS after this deal.

A great shock for the financial world after Lehman Brothers declared itself bankrupt on Monday.  

Share prices have tumbled and are likely to fall further as investors take flight from a sector that appears to be in meltdown.

Most of Lehman’s 25,000 employees will be out of work which is alarming as its been said in todays news that there will be a great job loss from British financial sector as well due to this financial slump which could be recovered by 2010/11.

I personally have moved from healthcare sector to financial sector after finding it a very charming sector for job especially in Edinburgh. Edinburgh is one of the europe’s biggest city being a home of financial giants.

Due to all these reasons i was facinated by Scottish Widows and luckly got a chance to work with this company. I beleive i wouldn’t be one the employees going to be sacked in future. As the company has a very good financial reputation so far and it’s Llyod TSB bank is planning to buy Britian’s biggest bank HBOS (which is currently not seeing good old days).

Hope for the best.