Commenting on reports of an alternative proposal to purchase HBOS by an overseas bank, Alex Neil MSP said:

"The position of the UK Government is totally incoherent, as they are faced with the damage to Scotland the Lloyds TSB takeover threatens in terms of loss of jobs, decision making and competition in the Scottish economy.

"On the one hand, Peter Mandelson is going pell mell for the Lloyds TSB takeover, and completely disregarding the dangers flagged up in the OFT report - including to banking services for small businesses in Scotland.

"On the other hand, Jim Murphy is publicising a possible alternative bid.

"What is abundantly clear is that there must be a pause for reflection now so that the best interests of Scotland can be properly evaluated, and all options considered - including HBOS remaining an independent bank.

"The UK Government have tried to rush this takeover through in defiance of Scottish interests. They should have been looking at all options, and it is disgraceful that it has been left to others to do so.

"The strong reaction in Scotland - including the Scottish Parliament vote on Thursday - is clearly having an effect.

"All options must be considered on equal terms, so that whatever finally emerges reflects the best interests of retaining jobs, decision making and competition for the people and businesses of Scotland."