HBOS and Lloyds in rumoured merger talks

It has been reported by the BBC that HBOS and Lloyds TSB are in merger talks.

Shares in HBOS have dropped by as much as 200p since markets closed on Friday but have rallied this morning rising to 190p at time of writing.

Shares in Lloyds have fluctuated wildly this morning rising as high as 297p before falling to 261p. Share prices now sit at 291p.

A merger would create a British banking giant with over 139,000 potential employees and nearly 30m existing customers.

Neither Lloyds or HBOS are commenting on the situation.