Lloyds Bank Fails in Bid to Buy Standard

Lloyds Bank’s $1.95-billion bid to acquire the international banking group Standard Chartered failed Saturday following last-minute intervention by Asian and Australian businessmen.

Lloyds said in a statement that its takeover offer, which expired Saturday, had been accepted by only 44.4% of Standard’s shareholders, well short of the necessary majority.

Lloyds chief executive Brian Pitman said he believes that the takeover would have succeeded had it not been for a spate of last-minute buying of Standard shares by foreign businessmen.

In a flurry of buying on Thursday and Friday, Hong Kong shipping and real estate magnate Y.K. Pau spent $187.5 million and built up a 15% stake in Standard.

Malaysian investor Tan Sri Koo also entered the battle, acquiring a 5.3% stake, while Australia’s Bell Group took a 6.4% holding.

Committed to Standard

All three committed their shares to Standard, which had opposed the Lloyds bid, banking sources said.

Although Lloyds, currently the fourth-largest bank in Britain’s national check-clearing system, has branches in 47 countries, it derives most of its profits from domestic operations.

Control of Standard’s international network, which includes branches in 60 countries, would have given Lloyds assets of $91 billion, firmly establishing it as an international banking force to be reckoned with, Pitman said.

(In California, the Union Bank is a subsidiary of Standard Chartered.)

Some analysts had questioned whether Lloyds should become embroiled in South Africa, where Standard has outstanding loans totaling $1.25 billion.

Until the Asian and Australian investors took a hand, analysts had expected Lloyds to win the bitter takeover battle.