The Lloyds TSB/ HBOS deal has one last obstacle to overcome as a UK court today hears a legal challenge filed by a group of Scottish businessmen, according to Reuters.
The Merger Action Group opposes the government’s decision to exempt the deal from competition laws. A decision could come as early as tomorrow, while HBOS shareholders are expected to vote in favor of merger on Friday.
The scheme of arrangement for the takeover needs to be approved by a majority of shareholders, regardless of the size of their holding, to protect the interests of small investors. It also needs the approval of at least 75 percent of the actual number of shares represented. HBOS has over 2 million small investors, who own about a fifth of its shares.
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