Government wins legal costs from Merger Action Group

Jun 24 2009 by Alun Thorne, Birmingham Post

The Government yesterday “vindictively” won £35,000 in legal costs from a group of businessmen who tried to block the takeover of HBOS by Lloyds TSB.

It fell short of the £62,000 which Business Secretary Lord Mandelson had been seeking from the Merger Action Group (MAG). But the award prompted an angry reaction from the group and opposition politicians.

Liberal Democrat Treasury spokesman Vince Cable said: “While ministers have a duty to safeguard public funds, in this case I get a very strong sense there is a vindictive element to the Government’s decision to pursue MAG for costs. This decision to award even partial costs could deter other groups – like the Equitable Life policy holders who undoubtedly feel they have been dealt with badly by the Government and are seeking justice in the courts but are being deterred from doing so.”

MAG appealed against the Government’s role in allowing the takeover without referral to the Competition Commission but this was rejected in December last year by the Competition Appeal Tribunal (CAT).