LLoyds TSB and HBOS deal renegotiated

Under the previous agreement HBOS shareholders were to receive 0.833 Lloyds TSB shares for each HBOS share that they owned. This has now been revised downwards and HBOS shareholders will now only receive 0.605 Lloyds TSB shares for each HBOS share that they own.

Should the governemnt end up having to put the full £17 bn of capital that is to be injected into the two banks it will end up with more than 43% of the combined business.

Lloyds TSB shares are currently up 19p at 209p whilst HBOS shares have fallen 23p to 101p following this morning's announcements.