Daily Banking Industry News
Thursday 20th of November 2008

Banking Sectors:

By company:

By organisation:

Also see:

January 3, 2008

A&L share price rises by 16% after takeover rumours

by Richard Kilner

Story link: A&L share price rises by 16% after takeover rumours

Alliance & Leicester enjoyed a 16% soaring of its share price on Wednesday following speculation that merger talks had been held with Spanish bank Banco Santander.

The credit crunch had decreased A&L’s share price significantly, and it is thought that this factor is what led the Spanish firm to approach the British bank in December.

The news of the potential merger caused A&L’s share prices to rocket by 106p, finishing on 754p.

However, neither firm has been willing to comment on the speculation.

The talks over a possible merger are believed to have ended in disagreement over the asking price. Despite this, Santander, who already have Abbey to their name in the UK, are rumoured to be willing to try again to acquire the bank.

The Spanish firm is actively looking for ways to expand its reach in the Uk and US, taking advantage of the present market difficulties, according to Santander’s chairman, Emilio Botín.

A large element in A&L’s tumbling share price, which lost two-fifths of its value last year, was the well-publicised troubles of Northern Rock.

By contrast, Santander has not faced great difficulty over the credit crunch compared to other banks, and has ready access to cash.

The Spanish bank has completed a number of international deals with other banks recently. Last year, working in a consortium with RBS and Dutch-Belgian Fortis they took over the Dutch bank ABN Amro for £52.2bn.

A&L is the seventh largest bank in the UK, but despite its size has been tipped as a potential takeover target for some time. National Australia Bank has been cited as a prospective buyer, and two years ago French firm Credit Agricole was reported to be considering purchasing the bank.

 

Add to Bookmarks:

ADD TO NETSCAPE     ADD TO DEL.ICIO.US     ADD TO DIGG     ADD TO FURL

ADD TO STUMBLEUPON     ADD TO YAHOO MYWEB     ADD TO GOOGLE     ADD TO SPURL


Related stories to: A&L share price rises by 16% after takeover rumours

HBOS sees share price rise on rumours of BBVA bid  ...

PBC: goods continue to rise in price  ...

Northern Rock shares fall following Virgin rumours  ...

Northern Rock To Fall From The FTSE  ...

A&L faces test of confidence  ...

No Comments »

No comments yet.

Leave a comment


Previous: « Delay possible for Personal Accounts Pension scheme
Next: 2008 to see Islamic banking to rise by 20% »

Visited 1019 times, 5 so far today

Investment Banking News

Investment Banking Newss
Evolution Securities expands Fixed Income unit

Savings & Investment News

Savings & Investment News
uSwitch.com: Banks quick to cut savings rate

Borrowing & Lending News


Employment News

Banking Employment & Jobs News
Baird establishes wealth management office in California