No room for HBOS in Lloyds top team
LLOYDS TSB boss Eric Daniels yesterday said he was committed to the takeover deal with HBOS and unveiled his management team that will run the enlarged bank.
Just one of seven main boardroom posts and one of four executive committee appointments will be held by HBOS executives.
The chief executive said there had been a “very fair” selection process and candidates from both banks had been considered. “You can’t have two of everything. A Noah’s Ark approach to management doesn’t work.”
Daniels dismissed doubts that the deal might not go ahead, saying: “I’m absolutely confident that it will.”
He also insisted there was no need to amend the terms of the deal again. “I can’t think of any reason why I would want to,” he said. “It’s a good deal for both sets of shareholders.”
The tie-up was agreed in September but the terms were lowered two weeks ago after financial sector turmoil sent shares in both companies tumbling and HBOS issued a profits warning.
HBOS shares remained under pressure on speculation the deal might not go through or the terms would have to be renegotiated.
HBOS closed up 6p at 94p and Lloyds rose 18bp to 197dp. Daniels also announced a series of boardroom and senior managerial appointments, almost all of them from Lloyds TSB, to run the bank after the merger.
Among the Lloyds executives on the board will be Helen Weir as head of retail banking, Truett Tate at wholesale banking, Archie Kane as head of insurance and Tim Tookey as finance director. HBOS’s Harry Baines will be company secretary.
The executive committee will include HBOS’s Jo Dawson, who will head a newly created wealth and international division, an area targeted by Daniels for expansion.
As previously announced, Daniels will be chief executive and Lloyds TSB chairman Sir Victor Blank will be chairman of the enlarged group. HBOS chief Andy Hornby will step down after the deal.
Lloyds made no comment on job losses amid speculation that up to 40,000 posts could disappear but said appointments in the “next layer of management” would be made in the next few weeks.