Bank takeover process 'not fair'

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Scottish First Minister Alex Salmond has accused the UK Government of failing to provide a level playing field over the future of HBOS.

His comments came amid concern that any bidders to rival the Scottish bank's proposed takeover by Lloyds TSB would not be treated fairly.

But Chancellor Alistair Darling told BBC Scotland that all bids would be considered in the same way.

A special appeal tribunal is looking into concern about the takeover.

A group of businessmen, bank customers and shareholders is to seek a legal ruling from the Competition Appeal Tribunal over Business Secretary Lord Mandelson's decision to allow the deal.

This is now small business against big business and big government Tavish Scott Scottish Liberal Democrat leader

The UK Government gave the green light to the takeover on 31 October, over-ruling competition concerns raised by the Office of Fair Trading.

Speaking during question time at Holyrood, Mr Salmond also confirmed that the Scottish Government had raised concerns about the proposed takeover with the Competition Appeals Tribunal.

The first minister told MSPs: "What it comes to the heart of is this - did the government ministers concerned, whether it be the prime minister, the chancellor or the secretary of state for industry, deliver the level playing field that we were promised? I think they did not."

His comments came in response to questions from Scottish Liberal Democrat leader Tavish Scott, who demanded to know whether the Scottish Government was prepared to provide legal support to the body which is going before the tribunal, the Merger Action Group.

Mr Scott said: "This is now small business against big business and big government. The Treasury is threatening to enforce big costs against the challengers."

'Fair hearing'

In an interview with BBC Scotland the chancellor insisted there was a level playing field in relation to the HBOS takeover.

He said: "I can't just hand over £12bn worth of public money to somebody who says 'Look, I think I can do better.' They've got to have a plan, they've got to have funding behind them. And if they can do that, I've made it clear from the start, then they will get a fair hearing, there will be a level playing field."

Mr Darling was speaking after visits to banks in London and Edinburgh.

He said he had encouraged the banks to lend to customers and pass on the latest Bank of England interest rate cut.