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Lloyds TSB confirms take over of HBOS

Lloyds TSB has confirmed this morning that it will take over rival bank HBOS. The move follows the collapse of shares in HBOS which has 20% of the UK mortgage market. The move would also create a new top ten insurer in the UK .

Both firms' boards have agreed to a deal valuing HBOS at £12.2bn or 232p a share, well below Halifax's 773p flotation value in 1997.

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