HBOS share prices fall amid Lloyds repricing rumours

HBOS shares have slipped today amid rumours that Lloyds TSB is considering a renegotiation of terms for its acquisition of the nation\'s largest lender.

Shares in the lender have fallen 12% to 124p while those in Lloyds have risen 4.3% to 13.7p.

Mergers and acquisitions commentators are voicing concerns that Lloyds could revise its offer to 0.6 of its shares per HBOS share from the previous 0.83 shares.

In an interview with Reuters Ian Gordon, analyst at Exane BNP Paribas, says: “Given extreme market volatility, the market is pricing in an increased risk that the Lloyds acquisition either won’t go ahead, or that there’ll be an attempt to renegotiate in Lloyds’ favour.”