A group of investors seeking to recoup £2bn of share value lost when Lloyds TSB merged with HBOS have accused Lord Mandelson of withholding evidence which could have stopped the flawed deal.
Lloyds Action Now (LAN) claims the former business secretary failed to disclose to a Competition Appeals Tribunal in Autumn 2008 and later the Scottish Court of Session how HBOS had been secretly granted £25.4bn of 'emergency liquidity assistance'. The group believes that failure to disclose the loan, which its lawyers argue constituted illegal state aid, would have altered the outcome of the case and could have blocked the merger, the Daily Mail reports. LAN spokesman Adrian Lithgow says: "The evidence submitted by Lord Mandelson was the subject of a secrecy order which means that no...
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