LONDON, Nov 14 (Reuters) - HBOS Plc, Britain's biggest mortgage lender, could have to be nationalised if its shareholders do not vote for its proposed takeover by Lloyds TSB , its chairman warned on Friday.
HBOS could need to raise more than 12 billion pounds ($17.8 billion) at a more expensive rate than it has agreed to pay under the UK government's rescue plan, which is dependent on the Lloyds deal going through, Dennis Stevenson said.
HBOS's board recommends the takeover by Lloyds, Stevenson said in a letter to shareholders on the vote, which will take place on Dec. 12.
If they vote against the deal HBOS will need to find alternative methods of increasing its capital to the plan agreed with Lloyds and the government last month.
In the letter Stevenson said HBOS expected the UK government to take "appropriate action" if the takeover was rejected. Such action might include the issuance of shares to the government "or the loss of independent or private sector status for HBOS".
HBOS would need 12 billion pounds if it stayed independent, the government told the bank, and the bank said "there can be no certainty" it would not need more than that or that it would be able to successfully raise capital.
(Reporting by Steve Slater) ($1=.6753 Pound) Keywords: HBOS/LLOYDS VOTE

(steve.slater@reuters.com; +44 207 542 4367; Reuters Messaging: steve.slater.reuters.com@reuters.net)

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