London - The British government is set to own more than 40 per cent of the new "superbank" resulting from the merger of Lloyds TSB and HBOS after a disappointing shareholders' response to a recapitalization scheme.

The two banks confirmed Monday that only a small percentage of new shares under the offer totalling 13 billion pounds (19.5 billion dollars) were bought by shareholders at preferential prices under the scheme launched at the height of the banking crisis.

This means that the government will ultimately own 43.4 per cent of the new Lloyds Banking Group, which is due to begin trading next week.

HBOS, or Halifax Bank of Scotland, said just 0.24 per cent of the 7.5 billion shares it offered to raise 8.5 billion pounds were taken up.

Lloyds TSB saw just 0.5 per cent of its 2.6 billion new shares to raise 4.5 billion pounds bought by existing investors.

Alongside its stake in Lloyds-HBOS, the government is also a majority shareholder in stricken Royal Bank of Scotland - owning almost 60 per cent of the bank. (dpa)