US bank JP Morgan Chase is considering a $2.6 billion offer for UK Internet bank Egg, majority owned by insurer Prudential, a source familiar with the situation said today.
"They're considering a bid, we'll have to see where it comes out," the source told Reuters news agency, adding a decision was expected to be made in the next week or two. JP Morgan declined to comment.
The sale of Egg has been dragging on since January when Prudential, which owns 79 per cent of the firm, said it was in preliminary discussions with several parties.
Sources close to the process have said the front-runners to buy Egg are US credit card companies Capital One Financial Corp. and MBNA Corp.
Prudential and Egg both declined to comment.
Britain's second-largest insurer has stopped and started negotiations with a number of potential buyers over the past 6 months, including Royal Bank of Scotland, but hit difficulties trying to find a bidder willing to meet its price demands, sources had told Reuters.
The sources said Prudential had originally wanted to sell Egg for two pounds a share, valuing the group at around £1.6 billion pounds.
Earlier this morning, Egg shares were up 0.8 per cent at 157 pence. Prudential was down 0.23 per cent at 432.5p.
Egg stock, which floated at 160 pence in 2000, rose to a peak of 197p in January after Prudential announced it had put the bank on the block.