Bankers give up on HBOS campaign

The two bankers wanted HBOS to remain independent

Sir Peter Burt and Sir George Mathewson have abandoned their attempt to stop the takeover of HBOS by Lloyds TSB.

The pair have released a statement saying that they have "reluctantly decided to discontinue their campaign".

They took the decision after the government made it "crystal clear" it did not want HBOS to stay independent.

They had argued that the takeover represented a bad deal for shareholders and were dismayed that the HBOS board had not explored other options.

Sir Peter, formerly of the Bank of Scotland, and Sir George, ex-head of the Royal Bank of Scotland, had argued that HBOS could remain independent if it were to take the government's bail-out money without merging with Lloyds TSB.

Capital required

In a statement, they congratulated Lloyds on what "may well be the deal of the century!"

The statement also criticised the HBOS board's "apparent apathy" in not exploring fully the option of remaining independent.

"Why hadn't the board firmly established... both the actual amount of capital required by the FSA and the terms on which the government were prepared to offer that capital?" it said.

Earlier this month, the two said that they should lead HBOS and that they intended to canvas shareholders.

The statement had been expected after the campaign website asking shareholders to support the bid for independence closed down earlier this week.

HBOS shareholders will vote on the takeover deal, which would create a banking giant with 145,000 staff and 3,000 branches, next month.

HBOS spokesman Shane O'Riordain said: "We are pleased that Mr Burt and Mr Mathewson have now done the right thing and withdrawn.

"Our recommended deal with Lloyds TSB is good for our shareholders and and is in the interests of financial stability across the United Kingdom.

"Our board has carefully considered the independence option and set out its thinking in the scheme document all our two million shareholders are currently getting through the post."