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Abbey National Moves for Bank of Scotland

News, 03 November 2000

UK mortgage bank Abbey National has begun possible merger discussions with the Bank of Scotland which, if successful, would create a company worth around £23 billion ($33bn).

Abbey is believed to have made the approach last week, and chairman Lord Tugendhat has since discussed a possible deal with BoS governor Sir John Shaw.

However, negotiations are still at a very early stage. The banks’ advisers have been holding preliminary discussions as a precursor to meetings between executives.

Success would provide some consolation for BoS, which lost a battle for NatWest last year. However, Abbey is believed to want to mould the deal as a takeover of BoS.

Both banks have declined to comment.

News source: Financial Times