We have received a letter from Sir Peter Burt and Sir George Mathewson and are reviewing it. Sir Peter and Sir George are not putting forward a substantive offer for HBOS.

In short, there is no money on the table.

We do not believe their proposal offers a significant prospect of value for HBOS shareholders, nor do we believe that it offers certainty of delivery for HBOS shareholders.

Their proposal assumes that government capital would be on offer to them, but they provide no certainty that this will indeed be the case.

The HBOS did, of course, consider the merits of a stand-alone option.

The board believes that the deal with Lloyds TSB is a superior proposition. That deal provides long-term financial benefits to HBOS shareholders. The new group will get synergies of at least £1.5bn.

In addition, the new group will be a very significant financial services player with a clear funding profile. That is very important in these uncertain times.

The HBOS board will consider any alternatives of merit or substance.