Alliance & Leicester reveals possible takeover bid

By MoneyhighStreet Staff. Published on July 14, 2008 This post currently has no comments.

Alliance and Leicester
Alliance & Leicester has revealed that it is in talks with a bidder over a possible takeover of the high street lender.

Reports suggest that the unnamed bidder could be prepared to offer 299p per share for the lender. With an interim dividend of 18p, the offer would have a total value of 317p a share.

On the back of the statement, the price of Alliance & Leicester shares jumped nearly 40 per cent and were trading at 08:45 BST at 319.75p.

It is believed that the lender made the news about the possible takeover public without the consent of the potential bidder.

In a statement to the London Stock Exchange, the lender said: "There can be no certainty that an offer will be forthcoming or as to its terms.

"A further announcement will be made when appropriate."

In the past, Alliance & Leicester has had talks with Spanish bank Santander.

Late last week, Alliance & Leicester named Alan Gillespie as its new chairman. It was hoped that the former chair of the Ulster Bank Group could help the lender weather the current economic crisis - which has caused shares in the lender to plummet from a high of around 1,200p a year ago.