Alliance falls after potential bidder goes elsewhere
Shares in UK banking group Alliance & Leicester fell sharply today after a potential suitor made a move on a different takeover target.
France’s Credit Agricole raised hopes of a bid for A&L in May when it admitted the UK bank was among the potential targets it was looking at.
But hopes of a payday for investors were dampened when Credit Agricole launched a €3.1bn offer for Greek lender Emporiki.
Shares in A&L lost some of their bid premium as a result, with shares falling by 8% at one point.
Investors have been on standby for a takeover in the UK banking sector for several months, with Alliance seen as the leading candidate.
As well as Credit Agricole, speculation has linked Abbey National’s Spanish owner Santander – a deal that would create a rival to Halifax owner HBOS.
Alliance shares have surged by around a third in the past year – up by as much as 13% in May when Credit Agricole revealed its interest.
Shares were at 1085p today but reports earlier this year said Alliance chief executive Richard Pym was looking for a figure near 1500p, or £6.7bn (€9.8bn).
Credit Agricole, which has around 130,000 employees and is the largest high street banking group in France, has been on the look-out for a takeover since integrating its acquisition of Credit Lyonnais in 2003.
