HBOS pension fund drops move to delay Lloyds deal

The trustees of the HBOS pension fund said on Thursday they had dropped plans to delay the bank's takeover by rival Lloyds TSB until they received funding guarantees for the retirement scheme.
The trustees said they did not want to jeopardise capital raising programmes planned by both banks next week.
"Having carefully considered the repercussions of any delay, and in view of helpful statements made by Lloyds TSB to the trustees in the course of the discussions, the trustees have decided it would be in the best interests of all concerned not to proceed with the planned action," the trustees said in a statement.
The trustees had planned on Monday to ask a Scottish court to delay final approval of the HBOS takeover, pending proposals of financial support for the fund from Lloyds.
The trustees said they were pushing ahead with a valuation of the pension fund that could reveal a deficit of 3 to 5 billion pounds, and pledged to keep up the pressure on Lloyds for a funding commitment.
"We believe that the actuarial valuation process currently underway will in due course deliver the necessary security for the scheme and its beneficiaries, and look forward to further discussions with Lloyds TSB," they said.
HBOS and Lloyds aim next week to raise 12 billion pounds and 5 billion pounds, respectively, in a share issue underwritten by the UK government as part of its bailout of the banking sector.