Linklaters is tipped for the top advisory role as Lloyds TSB enters into merger talks with Britain’s biggest mortgage lender HBOS.
Linklaters is understood to be advising Lloyds TSB on the talks, news of which emerged this morning when the Financial Services Authority was forced to release a statement saying it was satisfied with HBOS’s position after the bank’s share price went into freefall.
The magic circle firm is a regular adviser to Lloyds with London corporate partner Jeremy Parr the main relationship partner for the bank. The firm has previously acted for Lloyds on matters including its initial interest in buying fallen mortgage lender Northern Rock.
Allen & Overy (A&O), meanwhile, is in line for the lead role for HBOS. The bank’s panel also includes firms such as Linklaters, Herbert Smith, Travers Smith and Lovells; however, it turned to A&O earlier this year on its £4bn rights issue. London-based corporate partner David Broadley and relationship partner Alistair Asher led the A&O team on that deal.
One partner who knows both banks well said: “Nobody quite knows what to make of what is going on at the moment. HBOS has always had quite an aggressive stand doing deals other banks may not have and is very much focused on the UK market, which could have been where the problems have stemmed from.”
“We have already been flooded by calls from recruitment agencies looking to place in-house legal teams – the problem is no one can afford to recruit en masse at the moment.”
