Major HBOS, Lloyds investor backs deal terms: source

Standard Life Investments, a top investor in Lloyds TSB and HBOS, supports the planned takeover of HBOS by Lloyds under the terms originally announced, a person close to the investment firm said.
HBOS shares are trading at a big discount to the indicated offer price, reflecting concern the deal may not be approved by shareholders or will be revised by Lloyds.
By 7:14 a.m. EDT, Lloyds TSB shares were up 14 percent at 258.5 pence, giving its offer a value of 214.5 pence. Under the agreed offer, HBOS investors get 0.83 Lloyds shares for every HBOS share they own.
HBOS shares were 21 percent higher at 148 pence, making them the biggest riser in the FTSE 100 share index, and putting them at a 31 percent discount to Lloyds' offer price.
On Tuesday, the discount rose as high as 35 percent as HBOS shares fell on market talk Lloyds could attempt to cut its offer to 0.6 of its shares per HBOS share.
A second investor in both HBOS and Lloyds also expressed confidence the takeover would go ahead.
"I don't think there is a danger of the deal falling through. I think the key think is to get the deal done. I won't particularly argue for repricing," the investor told Reuters.