TWO top financiers from London will join a group of Scottish bankers and other senior figures this week amid continuing talk of attracting a rival bid to gatecrash Lloyds TSB's all-shares offer for HBOS.
It is understood the pair are either investment bankers or from the private equity industry and have indicated a strong interest in considering other options for the bank. One is believed to have hinted that he has clients who may want to get invol
ved.
Alex Neil, a member of the Scottish Parliament's finance committee, has convened a meeting "early this week" to examine options. He declined to name the participants, but confirmed two "senior players" from London, who are not Scottish, would be flying up for the meeting after contacting him.
He said other names mentioned were "pure speculation". It is thought the half a dozen or so expected to attend will include merchant banker Sir Angus Grossart; Jim Spowart, the founder of Standard Life bank and Intelligent Finance; and Sir Robert Smith, chairman of Weir Group and Scottish & Southern Energy, and a director of Aegon.
Neil said all options would be looked at, including a search for an overseas bidder.
"If you look to the Middle East and Far East there is genuine funding available, including well-heeled banks and sovereign wealth funds," he said.
"Bringing in a bank from another continent might be better for Scotland because they might see Edinburgh as a base for their European operations, whereas a London bank will see it as a branch of London."
Scotland on Sunday revealed last week that a number of disgruntled shareholders would like to see a counterbid.
Amid considerable scepticism in the City and Scotland, Neil admitted raising funds for a rival bid was a "long shot".
"The chances are that if there was another offer it would be from somebody outside the UK. I don't know of any other UK bank that has the money or would be allowed to do it. But we are talking to people with connections in various parts of the world."
He noted growing discontent over the proposed deal from analysts and shareholders in Lloyds TSB. "There is a change of mood among analysts about the desirability of this deal even if another bidder doesn't emerge. People are questioning whether it a good deal for Lloyds TSB."
Credit Suisse has joined JPMorgan and Société Générale in questioning the deal. At Friday's closing prices, Lloyds' offer values HBOS shares at 209p, against 232p the night before the offer was announced.
Market rumours suggest Lloyds will install Archie Kane, chief executive of Scottish Widows, as head of its combined Scottish operations. Kane, the longest-serving member of the Lloyds board, has been to the fore in the public presentation of the deal and held talks last week with First Minister Alex Salmond.
• UK trade minister Lord Jones launched a scathing attack on Alex Salmond for blaming the HBOS takeover on "spivs and speculators". The former director general of the CBI said it was "not a time for cheap political shots".
The full article contains 520 words and appears in Scotland On Sunday newspaper.
