Standard Life, one of the large institutional investors in Lloyds TSB, appeared to have thrown its support behind the rescue takeover of HBOS after concerns that the terms of the deal may have to be renegotiated.

Shares in HBOS on Tuesday rose 31.8p, or 27.3 per cent, to close at 148.1p after prime minister Gordon Brown said he expected the rescue deal to be completed.