No room for HBOS in Lloyds top team

Daily Express - - CITY& BUSINESS - By Peter Cun­liffe Deputy City Ed­i­tor

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.

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