Abbey go-ahead for N&P bid
Tuesday 02 May 1995
Abbey said that N&P would hand over an information pack giving confidential figures on arrears, repossessions, staffing levels and other confidential information this week.
The society will continue talking to Abbey as the latter prepares a formal offer, which the N&P board will either accept or reject in May.
Abbey was enthusiastic about the results of the talks while N&P was more non-committal. Only three people attended the 90-minute meeting in a London hotel; Abbey's chief executive, Peter Birch, and N&P's Alistair Lyons and his information technology director.
Mr Lyons said afterwards: "I was surprised that Peter's ideas were not as specifically formed as I was expecting. For instance, what place will N&P business have within Abbey?
"What is the value of N&P to Abbey - just its branches and assets, or its customer franchise? This is important. The ball is in his court."
Mr Lyons added that N&P was in active discussions with other potential bidders. These included institutions that lacked a personal finance distribution network, he said.
Yesterday's discussions followed Abbey's surprise announcement last week that it wanted to reopen bid talks with the UK's ninth-largest building society which stalled a year ago. Abbey said it was prepared to pay N&P's 1.7 million members "a substantial premium to net asset value".
This fuelled City comment that Abbey was preparing the firsthostile bid for a mutal building society.
Yesterday an Abbey spokesman said: "The talks show that we have moved away from any hint of a hostile approach."
N&P made an official announcement saying: "Alistair Lyons made it clear to Mr Birch that N&P retained an open mind about the Society's future strategic direction and that the Board's guiding principle was to act in the best interests of N&P's members."
"All relevant options would be examined carefully by the Board, which would make its recommendations known when it had completed its evaluation."
City analysts said that now was a good time for societies to sell up and get a good price if they wanted to, since there were many institutions, particularily banks, with plenty of spare capital.
There also many firms eager to get into or expand their mortgage businesses.
Hugh Pye, an analyst with BZW commented: "N&P seem to be saying; 'We're not going to be rushed into anything. If Abbey National does want to buy us, it will have to pay a very full price'.
"There is also a risk, which is to Abbey National's advantage, that every society member has a price. People seem to have £500 in mind."
N&P was forced to suspend opeing new savings accounts last Friday aftter thousands of customers deposited millions of pounds in the hope of a cash windfall if Abbey's approach succeeded.
The move was made after discussions with the industry regulator, the Building Societies Commission.
N&P will launch new savings accounts this week offering similar rates of interest but not allowing these customers to vote on an acquisition or receive a payout.
Abbeys shares ended the day down a penny at 464p, after enjoying a run last week.
- 1 Students heading off to 'charity challenge' grounded at Gatwick after travel firm goes bust
- 2 Notting Hill Carnival: Woman shares selfie after being ‘punched in face for telling man to stop groping her’
- 3 Daily Show's Jon Stewart destroys Fox News for its Ferguson coverage
- 4 When elitism grips the top of British society to this extent, there is only one answer: abolish private schools
- 5 Like Jennifer Aniston, I am no less of a woman because I am childless
Ashya King missing: Police hunt five-year-old boy with brain tumour snatched from Southampton hospital by his parents
YouTube video posted by Isis militants shows 'execution of 250 Syrian soldiers'
Daily Show's Jon Stewart destroys Fox News for its Ferguson coverage
Californian drought is so severe it's 'causing the ground to move'
Botched ice bucket challenge leaves man critically injured after plane drops hundreds of gallons of water
Exclusive: We share blame for creating 'jihad generation', says Muslim strategist
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
Do you realise just how foolish the UK looks?
Ukip Douglas Carswell defection: Tory MP jumps ship to join Nigel Farage
- < Previous
- Next >
iJobs Money & Business
£450 - £500 per day: Orgtel: SAS Business Analyst, London, Banking, Credit Ris...
£32000 - £38000 Per Annum Bonus, Life Insurance + Other Benefits: Clearwater P...
£200 - £250 per day + competitive: Orgtel: KYC Analyst, Key Banking Client, Bi...
£400 - £500 per day: Orgtel: Test Manager - Banking - West Yorkshire - £400-£5...