The company is believed to be eyeing opportunities in Europe, with one theory being a move to take Dresdner from German group Allianz in exchange for the Edinburgh-based Widows.

While Lloyds could retain a link through a distribution arrangement, it does look a little unlikely. After the pounding the bank got over the price it paid for Widows and its subsequent under-performance, it has invested heavily in turning it round so that it now contributes handsomely to the group's bottom line.

The bank could argue that it is now an attractive proposition for a prospective acquirer, but it would undermine the determined efforts made to stress its importance to the Lloyds TSB group.

What's more, the City likes Widows and therefore has rekindled its affection for the parent. The commercial arguments also appear flaky. There are no obvious cost synergies as there are no overlaps between Lloyds and Dresdner. The German bank isn't even that highly rated on its home territory.

Lloyds wasn't giving much away last week, neither denying the gossip nor providing any pointers to its plans for Widows. The staff are understandably nervous and have demanded answers. It is to be hoped the company makes its plans clear quite soon.

Hotel plan is nothing short of a disgrace
Edinburgh city councillors should hang their heads in shame for approving plans to build a 17-storey hotel in the Haymarket area that will blight the skyline and ruin views of the Castle. Last week's decision was a truly disgraceful move by those who should be protecting a world heritage city and have chosen instead to condemn it.

This monstrous and oversized development, which looks like a spaceship, will indeed be truly alien to a city whose good fortune is built on its handsome appearance. One of the great attractions of the route into Edinburgh, particularly on the Corstorphine approach, is that nothing obscures views of the Castle across the residential rooftops, not even Murrayfield Stadium which is virtually invisible for most of the journey.

Like the chain stores that robbed some of England's prettiest towns of their local character and beauty, we can soon expect Tiger Developments, Intercontinental and Travelodge to destroy a much loved and envied vista that is so rare in Britain. The architect, Richard Murphy, compares the Cockburn Association's objections to the plans to those it lodged against the building of the Balmoral Hotel. That would be funny if it were not so idiotic. But it is also typical of an architectural profession that seems to be having a laugh at the rest of us along with local authority planners.

There is one last chance for Edinburgh to be rescued from its act of municipal vandalism if the Scottish Government can be persuaded to throw out this crazed project. Sadly, the approval of ministers is regarded as a formality.

As a member of the media I feel partly guilty for not campaigning against this scheme more vigorously. But as a show of strength with those who objected, anyone connected with this development, including suppliers and clients or through public relations and marketing, will be named and shamed in this column. The recklessness of those councillors who backed this scheme should be appropriately rewarded at the next local elections.

SMG changes name but TV remains a risk
SMG is changing its name, not surprisingly to STV as the company has stripped itself of any pretensions of being a media group. The switch was predicted here a year ago when it seemed an inevitable part of the transition from its previous multi-platform strategy of newspapers, radio, advertising and television.

Chief executive Rob Woodward arrived with determined plans to rebuild the company around its roots. Out goes the SMG moniker acquired in 1996 after the acquisition of the Glasgow Herald and Evening Times, and the new name unifies the company with its product. The change follows the sale of outdoor advertising business Primesight last year and Virgin Radio last month and coincides with a new online strategy.

But focusing on television remains a risky proposition, given the competitive pressures looming in the digital switchover.