HBOS faces big loss as Miller fails

HBOS is staring at a loss of up to £26m following the appointment of a receiver to insurance services group Miller Fisher. The move into receivership came after HBOS refused to extend its £13m line of credit to Miller, which employs about 800 people in Britain, Dubai, France, Ireland and Singapore. HBOS also injected £13.25m into Miller at the end of last year, taking preference shares which could be converted into a 49% stake.

Miller has been involved in takeover talks and negotiations over further lines of credit for more than a year. Its shares have fallen from 89p in early 2000 to 3 1/2p when they were suspended today, valuing Miller at £5.7 million.

It made a £16.7m pre-tax loss last year from turnover of £45m, blaming the takeover speculation for failure to win and retain business. Receiver Deloitte & Touche said Miller would continue to trade while a buyer was sought.