Britain's third largest bank, Lloyds TSB, today moved a step closer to mounting a hostile bid for rival Abbey National, seeking clearance from regulators for its proposed takeover.
There is speculation in London that Lloyds could launch a hostile bid for Abbey within days.
Abbey has already rejected an indicative cash and shares bid worth about $18.2 billion sterling (euro 28.6 billion) from Lloyds TSB, describing the offer as inadequate and raising doubts that Britain's competition watchdog would sanction such a merger.
Abbey, Britain's fifth biggest bank is at the centre of a three-cornered battle involving Lloyds and Bank of Scotland. Abbey has been negotiating a merger with the Scottish bank, but Lloyds wants to break up their union.
Lloyds has yet to make a formal bid, but its initial approach was pitched at 1.5 Lloyds TSB shares plus £2.60 sterling in cash for each Abbey National share.
Abbey National's shares were 29 pence higher at £12.64 this afternoon and Lloyds's shares stood 100p up at £7.60, while Bank of Scotland's shares stood 13 pence higher at 726p in a strong banking sector.
Reuters