Friday, July 25, 2008
Going, going gone?
JP Morgan, the US banking giant that rescued Bear Stearns earlier this year, has held talks with several interested parties about forming a consortium to break up HBOS, the UK's biggest mortgage lender which includes the Halifax brand. HBOS's shares have been buffeted by the credit crunch and by fears about its £4bn rights issue. Speculation about a takeover of HBOS has been growing following the dramatic fall in its share price. They added that a consortium has not yet been formed and the talks could fall through. A break-up bid for HBOS might meet opposition from the Financial Services Authority, which would not want one of Britain's biggest banks to be destabilised.