LLOYDS TSB'S proposed takeover of Halifax Bank of Scotland (HBOS) could be complicated by a rival bidder after it emerged that a British government minister had discussed a new mystery offer for the bank.
Scottish secretary Jim Murphy has had talks with Jim Spowart, the founder of Intelligent Finance, about the possibility of a group putting together a rival offer for HBOS.
The Edinburgh-based banking giant has already agreed a multi-billion pound merger with Lloyds TSB, but Mr Murphy and Mr Spowart had further talks over the potential new deal on Saturday.
Mr Spowart told the BBC: "This is a genuine, genuine interest. I can't emphasise that enough at this stage, and just let's hope for Scotland this is another alternative that we're able to look at."
He also suggested the rival bid could keep more jobs and decision-making functions in Scotland.
An estimated 17,000 HBOS jobs are based in Scotland and it is feared thousands will be lost if the merger with Lloyds TSB goes through. However, politicians from the Scottish National Party questioned whether Mr Murphy had disclosed confidential information that might jeopardise any potential deal. - (PA)
