Shares in UK bank Abbey National jumped to a three-month high yesterday as rumours that it is a takeover target for Lloyds TSB revived.
Lloyds has urged the UK government to relax rules on domestic banking mergers, arguing foreign predators will act first. Abbey has frequently been seen as a bid target, with Lloyds and Spain’s Santander seen as possible predators.
Dealers said the latest move was sparked after Lloyds’ Chairman Maarten van den Bergh said there was a danger of UK banks being taken over by US banks unless domestic mergers were allowed.