HBOS trustees put up bank merger hurdle

TRUSTEES of the HBOS pension fund have thrown up fresh opposition to the Lloyds TSB/HBOS merger.

They have voted to ask in court for the deal to be delayed until better protection is offered.

Guardians will make a submission requesting the deal is not approved unless they are given greater security over payments.

They want an up-to-date valuation of the scheme, believing the UK's financial crisis will have widened the £95 million deficit calculated on December 31, 2006, to an estimated £3 billion to £5 billion shortfall.

In a letter to the HBOS pension fund, they said: "Your trustees have decided to take this step reluctantly. We understand the commercial basis underpinning the acquisition and do not oppose it as such.

"However, we also believe that it is fundamental that appropriate arrangements are made to protect the accrued benefits of final salary pension scheme members."