Salmond upbeat over HBOS takeover

Mr Salmond said the merger presented "a significant challenge"

First Minister Alex Salmond has said there could be "a positive result for Scotland" from the takeover of Scottish-based HBOS by Lloyds TSB.

Mr Salmond is preparing to lead a presentation to Lloyds TSB bosses, setting out the advantages Scotland has to offer as a business base.

The Scottish Government's Council of Economic Advisers met on Friday to discuss the �12.2bn takeover.

A framework backed by the Council will form a major part of Mr Salmond's case.

The framework which was approved at Friday's meeting, called the Positive Case for Scotland, highlights the significant growth there has been in the country's financial sector.

Both the government and business leaders want to retain as many jobs as possible in Scotland, as well as keeping decision-making functions north of the border.

The framework points out that Scotland is second to London as a financial hub within the UK, with more than half of the top 20 financial services companies having significant operations north of the border.

This is Team Scotland in action Alex Salmond

Mr Salmond said: "The proposed merger of Lloyds TSB with HBOS certainly represents a significant challenge, but also a major opportunity to present a wholly positive case in order to secure decision making functions and jobs for Scotland.

"As we build on this framework and assemble the full presentation we will make to Lloyds TSB, it will become ever clearer that the case for Scotland is formidable, based upon the excellence and scale of the Scottish financial sector.

"We have been the best performing part of the UK in attracting financial services jobs over the past three years, offering a competitive advantage based on lower operating costs alongside a high quality base."

He added: "The consensus nature of the Positive Case for Scotland is a major component of the strength of that case.

"This is Team Scotland in action, and I firmly believe that a united effort can deliver a positive result for Scotland during these difficult times."

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