A FORMER executive of HBOS is attempting to piece together a bid for the banking giant, in a move that could potentially jeopardise its proposed takeover by Lloyds TSB.

Jim Spowart, the Scottish financier who founded HBOS’s internet bank Intelligent Finance, is working on a bid with a foreign bank whose identity is not known.

Although he has yet to approach his former employer with an offer, Spowart has held preliminary talks with the Treasury and Jim Murphy, the Scottish secretary. He has since been assured that there will be no political objections to a serious counter-bidder emerging.

Spowart told The Sunday Times that there was a 50% to 60% chance that the party he is acting for would be able to produce a counter-offer – and that any deal would not require taxpayer support. “This is still at a very early stage,” he said.

Lloyds TSB and HBOS will publish trading statements tomorrow alongside a circular to shareholders outlining further details of their proposed merger, which would create Britain’s biggest retail-banking group.

Both banks are expected to announce further writedowns in response to the continuing deterioration in the economy and further falls in house prices. Analysts estimate that HBOS could announce up to £5 billion in further charges.

Lloyds TSB chief executive Eric Daniels is said to be increasingly concerned about potential losses in the HBOS integrated-finance business. Its clients include the billionaire retailer Sir Philip Green and the Scottish entrepreneur Sir Tom Hunter.

The portfolio includes HBOS’s investments in housebuilders such as Crest Nicholson and McCarthy & Stone, as well as huge exposures to commercial property. Roughly 40% of the bank’s £120 billion corporate loan book is exposed to property, where valuations are being severely hit by the recession.

According to sources close to Lloyds TSB, the bank is preparing to write off as much as £10 billion from HBOS’s balance sheet when the deal is completed in January.

It is understood the bank had not finished its due diligence on the integrated-finance business when it renegotiated its merger terms with HBOS three weeks ago.

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