HSBC not in talks with HBOS

LONDON (Reuters) - Europe's biggest bank HSBC Holdings is not in talks to do any rescue deal for HBOS, a person familiar with the matter said on Wednesday.

HBOS is in "advanced talks" with Lloyds TSB which could lead to an offer being made for HBOS, the bank said.

There had been speculation that HSBC, which has one of the strongest balance sheets of any bank, could also be interested in rescuing HBOS but the source said no such talks were taking place.

(Reporting by Steve Slater)