Thursday, October 2, 2008
M&G gives megabang a warmer feeling
M&G, the investment arm of the insurance group Prudential, has come out in support of Lloyds TSB's controversial £12 billion rescue takeover of HBOS. It plans to vote in favour of the deal in respect of its Lloyds shares and HBOS shares. It owns more than 2 per cent of each. Investors holding only Lloyds may prove to be more active in demanding that Lloyds squeezes a better deal from HBOS, particularly if due diligence over the next few weeks uncovers a further deterioration in its loan book.