Abbey hovering over A&L

By DAILY MAIL REPORTER
Updated:

 

SHARES in mortgage bank Alliance & Leicester jumped again amid persistent speculation of a bid from rival Abbey National. The shares, which I own, at one point climbed 23p before closing 9p higher at 811p.

Richard Staite, banking analyst at SG Securities, said: 'A&L would be a sensible deal for Abbey, out of a limited range of options. The City is not over-fond of A&L's management and would rate Abbey's more highly.' A&L, which last month announced 500 job cuts and downgraded its performance targets, has had a tough year. Managing director Peter Macnamara resigned in the autumn. The group is now run by ebullient chairman John Windeler.

It loses its five-year immunity from takeover in April. Other possible bidders for the company, still 50%-owned by private shareholders, include National Australia Bank, Lloyds TSB and Royal Bank of Scotland, whose chief executive, Fred Goodwin, says he is looking for 'mercy killings'.

Analysts reckon a bidder would have to pay up to £9 a share for control. Abbey refused to comment. A bid is not thought to be imminent as most of its executives are on holiday. A&L said: 'We will always look at options.'

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