CPYTHU,070
REQUEST FROM LLOYDS BANK TO BE ALLOWED TO ACQUIRE SHARES IN
MIDLAND BANK: Q&A BRIEFING
Q1. Why has Lloyds Bank been given permission to buy shares
in Midland?
A1.
Q2.
A2.
Q3.
A3.
Lloyds Bank requested the President's consent to their
being allowed to acquire shares in Midland. The
President considered that a shareholding limited to less
than 10% of Midland's share capital would not give Lloyds
material influence over Midland or prejudice the outcome
of the MMC's current investigation.
Isn't this decision inconsistent with the decision to
refer Lloyds' possible offer for Midland to the MMC?
No.
The President considered that a merger of Lloyds and
Midland raised competition issues in the supply of
banking and associated services in the UK that merited
investigation by the MMC. He is satisfied that allowing
Lloyds and its associates to acquire a shareholding limited to less than 10% of Midland's share capital will
not give Lloyds material influence over Midland or
prejudice the outcome of the MMC's investigation.
Why does the consent restrict the amount of shares that:
Lloyds and its associates can acquire in Midland?
The request from Lloyds was to be allowed to acquire up
to 10% of Midland's shares. The President would not have
been prepared to agree to Lloyds and its associates
acquiring enough shares to have given it material
influence over Midland given the competition issues
raised by a merger between the two banks which are being
investigated by the MMC.
200
CADIMOD NOLI13dW00) 10
SS:60
26/90/50
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