LONDON, Nov 10 (Reuters) - Britain's biggest mortgage lender HBOS on Monday formally dismissed opposition to its government-sanctioned takeover by Lloyds TSB from the former heads of Royal Bank of Scotland and Bank of Scotland.
The former heads, Peter Burt and George Mathewson, want to replace the current HBOS chief executive and chairman, the BBC reported on Saturday, and believe the bank can survive on its own now the British government has stepped in with capital to support the banks.
HBOS, which had already confirmed its rejection of proposals contained in a letter from the two men, on Monday published the text of its response via the stock exchange, saying it noted the men's "personal reservations" and apparent desire to see the deal abandoned.
"The board has unanimously concluded that your letter does not form the basis for any further discussion between us," HBOS said in its response.
Burt was chief executive of Bank of Scotland when it merged with Halifax to form HBOS in 2001. Mathewson was previously chief executive and then chairman of RBS.
"It is our intention to create a detailed alternative plan that we believe will represent better value for both the HBOS shareholders and stakeholders alike by keeping HBOS as an independent bank," the BBC had quoted their letter as saying.
But HBOS said the men had not addressed any specific aspect of a takeover it believes will have "very considerable benefits" to the bank's shareholders.
"Nor do you set out a value proposition for shareholders, or address how your idea would provide certainty or stability for HBOS and its shareholders and customers," the bank said.
"You provide no assurance as regards the terms on which HMG (Her Majesty's Government) would be prepared to recapitalise HBOS standalone under your leadership."
Britain last month unveiled a 37 billion pound ($58.1 billion) plan to recapitalise some of the UK's biggest banks but attached a series of conditions to a bailout that will see the government take stakes in the institutions involved.

(Reporting by Paul Hoskins, editing by Will Waterman) Keywords: HBOS/ (paul.hoskins@reuters.com; +44 20 7542 5331; Reuters Messaging: paul.hoskins.reuters.com@reuters.net)

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