Lloyds Banking Group Plc entered into merger talks with several banks including ABN AMRO Group NV and Germany's Postbank in 2008 before agreeing to acquire HBOS Plc, Truett Tate, Lloyds' former wholesale and internal banking head, revealed in a court hearing, The Times of London reported.
The former Lloyds executive also said that the lender discussed a merger with Royal Bank of Canada, Wells Fargo & Co., Wachovia, Dresdner Bank (DIFC) Ltd. and Australia & New Zealand Banking Group Ltd. Lloyds went with HBOS as difficulties heightened in the summer of 2008, which prompted U.K. regulators to waive competition rules so that the deal would push through, the Dec. 12 report noted.
The hearing came as a part of a cross-examination in the U.K.'s High Court for a €600 million suit filed against former Lloyds directors by around 6,000 shareholders, who claim that the risky situation of HBOS at the time of the merger was withheld from them.
Tate reasoned that it was difficult to obtain HBOS' loan books at that time because of client confidentiality, the newspaper wrote.
