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Legal challenge to HBOS takeover
The group is seeking to halt the takeover of HBOS by Lloyds TSB
A last-ditch attempt to block the planned Lloyds TSB takeover of Halifax Bank of Scotland has been launched.
A group of businessmen, bank customers and shareholders is to seek a legal ruling over Business Secretary Lord Mandelson's decision to allow the deal.
The group is to seek the ruling from the Competition Appeal Tribunal, a specialist legal body which decides appeals on competition issues.
The UK Government gave the green light to the takeover on 31 October.
It over-ruled competition concerns raised by the Office of Fair Trading.
Financial system
The legal bid is being mounted by the Merger Action Group (MAG), whose spokesman is an Edinburgh architect, Malcolm Fraser, who was responsible for the repair and renewal of HBOS's historic headquarters in Edinburgh.
Lord Mandelson said the public interest of "preserving the stability of the financial system" outweighed any potential anti-competitive effects.
Lloyds TSB shareholders backed the deal at a meeting in Glasgow on 19 November and HBOS shareholders are to decide in December.
MAG is asking for the tribunal to sit in Edinburgh as it is a Scottish group and both banks are registered in Scotland.
But it also wants to act as a rallying point across the UK and is seeking the support of unions, industry bodies and consumer groups.
People who are worried about their jobs and local branches will be relieved to see business leaders standing up for them 
Tavish Scott
Scottish liberal Democrats
Mr Fraser said: "As a group, we are extremely concerned that due legal process has been ignored. "In Scotland, particularly, there is a widespread and growing unease at what has taken place.
"Given that taxpayers are ultimately funding the takeover, we are simply asking that the law is properly applied and that our long-term interests are protected."
He said the tribunal had the power under the Competition Act to force Lord Mandelson to refer the proposed merger to the Competitions Commission.
Scottish National Party MSP Alex Neil welcomed the latest bid to block the takeover.
He said: "This is a serious case for the Competition Appeals Tribunal and is their chance to show that riding roughshod over competition law to keep the prime minister happy is not acceptable.
"Throughout this merger Labour has gone out of its way to see that no other deal could be put forward and that no alternative was ever offered to HBOS. That is something that must be looked into."
Scottish Liberal Democrat leader Tavish Scott said: "This is an important new and emerging campaign to keep HBOS independent.
"People who are worried about their jobs and local branches will be relieved to see business leaders standing up for them."
HBOS spokesman Shane O'Riordain said: "We believe this appeal has no merit whatsoever.
"It is an unnecessary distraction and we would ask this group to reconsider their action.
"Our recommended transaction with Lloyds TSB is in the interests of all our stakeholders, including those in Scotland."
source: BBC NEWS | Scotland | Legal challenge to HBOS takeover
Link to merger action group: Merger Action Group
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Link to press release re challenge: http://www.mergeractiongroup.org.uk/...-Challenge.pdf
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http://www.mergeractiongroup.org.uk/...l-Tribunal.pdf
Link above for their legal submission.
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Their appeal will be heard here: Competition Appeal Tribunal | Welcome
The group is seeking to halt the takeover of HBOS by Lloyds TSBA last-ditch attempt to block the planned Lloyds TSB takeover of Halifax Bank of Scotland has been launched.
A group of businessmen, bank customers and shareholders is to seek a legal ruling over Business Secretary Lord Mandelson's decision to allow the deal.
The group is to seek the ruling from the Competition Appeal Tribunal, a specialist legal body which decides appeals on competition issues.
The UK Government gave the green light to the takeover on 31 October.
It over-ruled competition concerns raised by the Office of Fair Trading.
Financial system
The legal bid is being mounted by the Merger Action Group (MAG), whose spokesman is an Edinburgh architect, Malcolm Fraser, who was responsible for the repair and renewal of HBOS's historic headquarters in Edinburgh.
Lord Mandelson said the public interest of "preserving the stability of the financial system" outweighed any potential anti-competitive effects.
Lloyds TSB shareholders backed the deal at a meeting in Glasgow on 19 November and HBOS shareholders are to decide in December.
MAG is asking for the tribunal to sit in Edinburgh as it is a Scottish group and both banks are registered in Scotland.
But it also wants to act as a rallying point across the UK and is seeking the support of unions, industry bodies and consumer groups.
People who are worried about their jobs and local branches will be relieved to see business leaders standing up for them Tavish Scott
Scottish liberal Democrats
Mr Fraser said: "As a group, we are extremely concerned that due legal process has been ignored. "In Scotland, particularly, there is a widespread and growing unease at what has taken place.
"Given that taxpayers are ultimately funding the takeover, we are simply asking that the law is properly applied and that our long-term interests are protected."
He said the tribunal had the power under the Competition Act to force Lord Mandelson to refer the proposed merger to the Competitions Commission.
Scottish National Party MSP Alex Neil welcomed the latest bid to block the takeover.
He said: "This is a serious case for the Competition Appeals Tribunal and is their chance to show that riding roughshod over competition law to keep the prime minister happy is not acceptable.
"Throughout this merger Labour has gone out of its way to see that no other deal could be put forward and that no alternative was ever offered to HBOS. That is something that must be looked into."
Scottish Liberal Democrat leader Tavish Scott said: "This is an important new and emerging campaign to keep HBOS independent.
"People who are worried about their jobs and local branches will be relieved to see business leaders standing up for them."
HBOS spokesman Shane O'Riordain said: "We believe this appeal has no merit whatsoever.
"It is an unnecessary distraction and we would ask this group to reconsider their action.
"Our recommended transaction with Lloyds TSB is in the interests of all our stakeholders, including those in Scotland."
source: BBC NEWS | Scotland | Legal challenge to HBOS takeover
Link to merger action group: Merger Action Group
------------------------------- merged -------------------------------
Link to press release re challenge: http://www.mergeractiongroup.org.uk/...-Challenge.pdf
------------------------------- merged -------------------------------
http://www.mergeractiongroup.org.uk/...l-Tribunal.pdf
Link above for their legal submission.
------------------------------- merged -------------------------------
Their appeal will be heard here: Competition Appeal Tribunal | Welcome
