Life insurer Standard Life may decide whether the £12bn merger of troubled bank HBOS with Lloyd’s TSB is stopped in favour of a rival proposal from Scottish bankers Sir George Mathewson and former Bank of Scotland chief executive Sir Peter Burt.
Standard Life has a 3.5% stake in HBOS and is a top five shareholder. It was said to be considering the rival proposals.
The two bankers branded the current management a “busted flush” and want Sir Peter as chief executive and Sir George as Chairman. They argue that with the government pumping money into the banking system there is no need for the merger and HBOS should remain independent.
They have investment bank Fairfax advising them and a campaigning website www.independenthbos.com is expected to go live this week.
HBOS dismissed the proposals. Others suggest the move is politically motivated, driven by Scottish nationalism.
