HBOS targeted for takeover

25-07-2008

HBOS targeted for takeover
US investment bank JP Morgan is in talks over plans to break up Halifax Bank of Scotland (HBOS).

The Telegraph reports a number of large international banking players and private equity firms have been approached over a deal for the UK's largest mortgage lender.

Plans would mirror the break-up of ABN Amro last year, with different players taking on HBOS's different international interests – with the Telegraph naming interested parties as possibly being National Australia Bank (NAB) and Abbey-owner Santander.

Insight, HBOS's investment management division, and its insurance business Clerical Medical could be sold off or picked up by a buyer, along with its UK high street banks.

HBOS has become a takeover target following the sharp decline in its share price over the last year and the recent poor showing from investors on its rights issue.

In the last 12 months, the HBOS share price has fallen 71 per cent – from just under £10 a share to a recent low of 286.25p.

A spokesperson for HBOS refused to comment on the deal, but said: "There has been a lot of speculation in the banking market of late."

Doubts have been raised over the reports after Santander's recent deal to buy Alliance & Leicester make it less likely to be making a further bid.

Also NAB – owner of Yorkshire and Clydesdale banks in the UK – also today announced it was setting aside AU$830 million (£400 million) to cover losses from the US mortgage market.

Last week a takeover bid from Spanish rival BBVA was mooted.

This morning the HBOS share price fell 3.15 per cent to 292p at 9:08 BST.

Bookmark with:
Bookmark with: Digg Digg Bookmark with: Del.icio.us Delicious Bookmark with: Reddit Reddit Bookmark with: StumbleUpon StumbleUpon Bookmark with: Google Google Bookmark with: Technorati Technorati Bookmark with: Netvouz Netvouz

Latest News:

Search News
News Front Page
Accountancy / Tax
Advertising / PR
Armed Forces
Automotive
Aviation / Aerospace
Banking / Finance
Charities / Voluntary
Childcare / Youth
Construction / Property
Customer Services
Education / Training / Teaching
Emergency Services
Engineering / Electronics
Entertainment / TV / Theatre
Graduate Roles
Health / Beauty
Hotel / Catering / Restaurants
HR / Recruitment
Insurance / Pensions
International / Overseas
IT / Internet
Legal
Management / Business
Manufacturing / Industry
Media / New Media / Creative
Medical / Healthcare
Pharmaceutical Industry
Public Sector
Retail / Wholesale
Sales / Purchasing / Marketing
Science / Technology
Secretarial / PA / Admin
Skilled / Semi-skilled Manual
Telecommunications
Transport / Logistics
Travel / Tourism / Leisure