A legal bid to block the planned Lloyds TSB merger with HBOS is expected to get under way today.
A group of businessmen, bank customers and shareholders is seeking a legal ruling that Business Secretary Lord Mandelson's decision to allow the merger was unlawful.
The last-ditch bid is being mounted by the Merger Action Group (MAG), which has taken its case to the Competition Appeal Tribunal (CAT) - a specialist legal body with the function of deciding appeals on competition issues.
The legal challenge is set to begin today and it is hoped that it can be completed the following day. The campaigners will challenge the Government's decision to waive competition rules to allow the takeover.
MAG spokesman Malcolm Fraser said he believes the tribunal has the power under the Competition Act to force Lord Mandelson to refer the proposed merger to the Competitions Commission.
HBOS spokesman Shane O'Riordain branded the appeal an "unhelpful and unnecessary distraction". He said last night: "We're confident the appeal will be unsuccessful and we would then ask this self-appointed group to withdraw.
"It is time that people stopped using HBOS as a plaything. "This is a large and substantial company with many employees and many customers. "We wish to see a clear resolution to this issue and that's what the deal with Lloyds TSB brings for our company."
But Tavish Scott, leader of the Liberal Democrats in Scotland, said the tribunal must find that ministers were wrong. "This is a very important week for Scotland's economy," he said.
"The tribunal hearing needs to find that Government ministers were wrong not to refer the Lloyds TSB-HBOS takeover to the Competition Commission.
"I want to see the long term interests of Scotland's economy strengthened. "Reducing competition in the market place will only weaken our banking sector."
PA