Shares in NationalWestminster rose 9% yesterday in anticipation of a bidding war for the bank.
The catalyst was confirmation from the Royal Bank of Scotland (RBS) it may make an offer. Analysts believe both the Bank of Scotland or RBS could increase their offer because of cost savings from the merger. But the Financial Times points out prices could spiral even further if other banks see this as the last chance to grab a foothold in the UK market.
An RBS-NatWest linkup could boost moves for a pan-European banking alliance. The Scottish bank is enlisting the help of Spanish banking giant BSCH which has been in talks with Societe Generale. Analysts have suggested SocGen may also play a role in an RBS bid for NatWest. But The Daily Telegraph reports the government is set to end the practice of protecting banks from foreign takeovers.
Financial Times 28/09/99 page 27
The Times 28/09/99 page 23
The Independent 28/09/99 page 20, page 25 (City Diary)
The Daily Telegraph 28/09/99 page 29, page 31 (City Diary)
The Times 28/09/99 page 27
