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HBOS shares up on Lloyds merger speculation; markets remain uncertain

By Bridgid Nzekwu

Updated on 17 September 2008

Shares in the country's biggest mortgage lender HBOS rise over speculation it's in advanced merger talks with rival Lloyds TSB.

The news comes amid continued uncertainty in the markets.

Although neither bank has commented, the reports came after shares in HBOS fell fifty per cent during early trading.

The markets have also been digesting an $85bn rescue package in the United States for its biggest insurer AIG.

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