HBOS 'considering £9bn bid for Abbey National'

Banking group HBOS is mulling a possible £9bn (€13.6bn) counter-bid for takeover target Abbey National, it was reported today.

Banking group HBOS is mulling a possible £9bn (€13.6bn) counter-bid for takeover target Abbey National, it was reported today.

HBOS has a team looking at the benefits and disadvantages of bidding for Abbey, which last week agreed an £8.5bn (€12.9bn) merger with Spain’s biggest bank, Banco Santander Central Hispano (BSCH), a national Sunday newspaper reported.

Abbey’s shareholders had sent “a clear message” that they wanted to see an offer from HBOS, the newspaper cited an executive with a close knowledge of HBOS as saying.

A spokesman for HBOS refused to comment on the report in today’s Sunday Telegraph.

“We don’t comment on market speculation or rumours,” he said.

BSCH and Abbey both hailed last week’s deal, which is expected to result in Europe’s biggest cross-border banking takeover.

The UK’s second largest mortgage provider, which is undergoing a three year overhaul, said the proposed tie-up was necessary to accelerate its own recovery.

BSCH said the acquisition would be an “excellent entry” into the UK market and pledged to drive sales from better use of Abbey’s 741-strong branch network and from modernisation of the company’s IT network.

However, the announcement got a lukewarm response from BSCH shareholders and analysts and investors in the UK also expressed reservations, particularly as shareholders face the prospect of holding shares in a euro denominated company.

Today’s report quoted the executive with close knowledge of HBOS as saying that big institutions with stakes in Abbey did not want Santander’s shares.

“They would much rather see an all-UK deal funded by our shares,” the executive said.

The report added that competition experts had told HBOS that it may be the only substantial UK bank that regulators would allow to take over Abbey.

Abbey has attracted interest from National Australia Bank and Bank of Ireland in the past, while Lloyds TSB was blocked by competition authorities from completing an £18bn (€27.3bn) takeover in 2001.

The Halifax and Bank of Scotland merged to form HBOS in September 2001.

more courts articles

Man (25) in court charged with murdering his father and attempted murder of mother Man (25) in court charged with murdering his father and attempted murder of mother
Man appears in court charged with false imprisonment of woman in van Man appears in court charged with false imprisonment of woman in van
Man in court over alleged false imprisonment of woman Man in court over alleged false imprisonment of woman

More in this section

FILE PHOTO The Competition and Consumer Protection Commission has cleared the purchase of Goodbody Stockbrokers by AIB END Goodbody Stockbrokers fined over €1.2m by Central Bank over rules breaches
Nottingham City Centre Stock Irish staff at the Body Shop wait for wages as retailer shuts stores in the Republic
Ryanair comments on Norwegian Ryanair boss O'Leary's spat with Transport Minister over Dublin Airport escalates
IE logo
Devices


UNLIMITED ACCESS TO THE IRISH EXAMINER FOR TEAMS AND ORGANISATIONS
FIND OUT MORE

The Business Hub
Newsletter

News and analysis on business, money and jobs from Munster and beyond by our expert team of business writers.

Sign up
ie logo
Puzzles Logo

Play digital puzzles like crosswords, sudoku and a variety of word games including the popular Word Wheel

Lunchtime News
Newsletter

Keep up with the stories of the day with our lunchtime news wrap.

Sign up
Cookie Policy Privacy Policy Brand Safety FAQ Help Contact Us Terms and Conditions

© Examiner Echo Group Limited