Lloyds under Merger Panel spotlight

By DAILY MAIL REPORTER
Updated:

 

Lloyds TSB's £19bn bid for Abbey National will be scrutinised today at a confidential gathering of top Government officials. The Office of Fair Trading has called a meeting of the Mergers Panel because it believes the bid raises significant public interest and competition concerns.

The highly-secretive panel will advise OFT director-general John Vickers on whether to recommend that the bid be referred to the Competition Commission. It is composed of fair trading officials and others with an interest in the bid, such as the Department for Employment.

Around one quarter of cases considered by the panel are referred. A source said: 'This is a significant development, but it is not definitive.'

A decision from the OFT on Lloyds bid for Abbey is due by 23 February. City observers believe a referral of the bid, which will cost at least 9,000 jobs, looks increasingly likely. TUC general secretary John Monks said: 'More jobs are at stake than the recent losses at Corus and Vauxhall put together.'

The OFT gave Abbey National the go-ahead earlier this week for an alternative plan to defy Lloyds and merge with Bank of Scotland. But shareholders are growing impatient with Abbey. It has not released details of the proposed merger even though talks with BoS have dragged on since summer.

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