Lloyds investors back HBOS deal

By Steve Slater

LONDON (Reuters) - Lloyds TSB investors overwhelmingly backed its takeover of HBOS and a government bailout plan on Wednesday, putting the banks on track to complete the deal in mid January.

More than 96 percent of shareholders supported votes on the takeover, the issue of new shares under the fundraising plans and six other resolutions.

"We believe this transaction provides certainty for the shareholders of HBOS and they, along with the Lloyds TSB shareholders, will have the opportunity to share in the benefits that come from the combination," Eric Daniels, Lloyds CEO, said in a statement following the meeting in Glasgow.

Most of the resolutions only needed majority approval and approval of the deal had been widely expected.

At 4:53 p.m., Lloyds shares were down 9.7 percent at 118.44 pence, in line with another steep fall by European banks. HBOS shares were up 2.1 percent at 64.3p, clawing back recent losses but still below the 73.8p implied value of the Lloyds offer.

JOB CONCERNS

Lloyds also faced unions concerned about the potential for as many as 40,000 job cuts.

Daniels said no decisions had been made on the scale of job cuts, and he was reviewing offshoring and outsourcing policy.