An end of an era for Abbey?

Abbey confirmed that investors owning 94.4% of the group backed the deal in a vote at its extraordinary general meeting on Thursday.

But, despite the majority backing, Abbey's board faced heavy criticism and constant heckling at the conference.

The takeover is expected to be completed in November.

On Wednesday, the takeover received a boost when the City watchdog said it saw no reason to block the offer

Although no formal decision has been made, the Financial Services Authority (FSA) said it saw "no material impediments" to the proposed takeover.

Go-ahead

Sixty-four percent of shareholders, accounting for 94% of Abbey's shares, backed the takeover bid.

Abbey needed the approval of shareholders who accounted for 75% of the company's shares before the deal could go ahead.

About 900 shareholders flocked to the EGM in Wembley to air their views on the deal.

But anyone expecting a quiet discussion was mistaken, as hecklers attacked Abbey's board.

SCH is planning a secondary listing for its shares in London

Chairman Lord Burns was told to "go to hell" as well as being labelled "a weasel" and "useless".

"If you can't communicate between London, Milton Keynes, Sheffield and Stockton, ... how are you going to deal with management in Spain?," said longstanding shareholder Richard Pout.

Shareholders also questioned SCH's corporate government as they voiced their opposition to a sale to a foreign bank.

Mr Pout went as far as demanding that the meeting be adjourned while allegations of financial misconduct against SCH executives were investigated.

But his motion was defeated by 756 million votes to 43 million as Abbey used the votes of proxy shareholders to press ahead with the meeting.

Another investor accused the bank's board of a rushed transaction that was "done in a weekend".

Lord Burns said he believed that Abbey would emerge a "stronger, more competitive force on the High Street" as a result of the SCH takeover.

Clear path

SCH launched its offer for Abbey in July and there was immediate speculation that a rival bid would come from a UK bank.

HBOS, the owner of the Halifax and Bank of Scotland, was seen as the most likely bidder, but last month it announced it would not be entering the race.

A bid from HBOS, or any other UK bank, was expected to have come under close scrutiny from UK competition watchdogs, especially given that a bid for Abbey by Lloyds TSB was blocked by regulators in 2001.

Many Abbey shareholders still hold the windfall shares they received when the bank converted from a building society and floated on the stock market in 1989.

Abbey shares were floated at a price of �1.30, peaked at �14.35 in 1999 and closed on Wednesday at �5.92.

Earlier this week, SCH announced plans to assist Abbey's smaller shareholders who want to sell their stake when the takeover goes through.

Those investors with 2,000 or fewer shares in the bank will be able to sell them using SCH's free share-dealing facility, and will not, as was initially feared, have to fill in a Spanish tax return.