UK lender Alliance & Leicester is once again the center of bid speculation as another report published in a London newspaper said that Spanish banking group Banco Santander is planning a GBP6.5 billion offer.
The seventh largest UK bank recently rejected an informal bid from Credit Agricole, worth GBP5.8 billion, for undervaluing the company. However, A&L chief executive Richard Pym is thought to be open to an offer in the region of GBP6.7 billion.
A&L shares jumped 5.8% on the speculation to GBP11.87. Neither bank has commented on the speculation, although rumors have been circulating for a while of a potential takeover. Spain’s biggest bank bought rival UK lender Abbey for GBP9.65 billion in 2004 and further acquisitions are expected to drive cost savings.