17 October 2008

Here comes the belated backlash

I have no wish to be unkind but signing letters is not going to do the trick. The Scotsman reports:
THE tycoon Sir Tom Farmer is at the head of a growing list of senior business figures demanding a rethink of the HBOS takeover, The Scotsman can reveal.
Figures from industries including construction, retail, property and tourism are all concerned the controversial deal could be against the long-term interests of the taxpayer. They are deeply worried it could prove contrary to Scotland's future economic success and damage its corporate environment and retail banking and mortgage sectors.
Sir Tom and his contemporaries are the first to sign an open letter being sent to political leaders throughout Scotland and the UK – including Alistair Darling, the Chancellor, and Alex Salmond, the First Minister.

The obvious route is via the shareholders who will have to agree to the takeover. Is it impossible for these captains of industry to pressurise the HBOS shareholders (many of whom are institutions themselves) to resist the takeover? Meanwhile the shares are going cheap - if the big guys have a spare million or two to spend, perhaps they might become shareholders in order to vote. They would thus be putting their money where their mouths are.

2 comments:

Jeff said...

Yes, with HBOS having a market cap of £4.5bn, I think they'd need more than the odd million to have any impact on the voting.

At least they're putting up something of a fight and raising the issue.

Anonymous said...

A pity they wern't so concerned when Andy Hornby was leading HBoS to diaster with his ill-concieved policies. A bit late now; an independent HBoS can only survive with even more Government support and the question is why should more taxpeyers money go in just to keep the headquarters in Scotland.