Monday July 14, 10:10 AM
Bank In Advanced Takeover Talks
By Sky News
Alliance & Leicester says it is in advanced talks about a possible takeover of the company. It did not reveal the name of the suitor. The bank's shares jumped by more than 50% as it said the potential offer valued the business at 299p
a share, equivalent to £1.25 billion.
A possible suitor could be Spanish banking giant and Abbey owner Santander, which is thought to have held discussions with the group last year.
Today the company refused to comment on the takeover speculation.
In 2006 France's Credit Agricole said it was considering a potential takeover but instead launched an offer for Greek lender Emporiki.
The potential offer talks come as the group struggles with the financial impact of the credit crunch, which has seen A&L relegated from the FTSE 100 Index this year.
In May, the bank said it was funded into the second quarter of 2009, but warned that the deteriorating value of its assets had cost it almost £400m in the first four months of this year.
Alliance & Leicester can trace its origins back to 1852 and the formation of the Leicester Permanent Benefit Society. It demutualised in 1997, joining the FTSE 100 Index.
The company has also seen board upheaval this year alongside the financial turmoil. The group appointed Alan Gillespie as chairman last week after previous incumbent Sir Derek Higgs died in April.
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