BoS says predators will fail

Bank of Scotland yesterday made clear that any potential predator would be firmly rebuffed, as it began a two-week international roadshow to help Standard Life sell pounds 840m worth of its shares to institutions.

Sir Bruce Pattullo, governor of Bank of Scotland, said: "If there is a predator they know they are going to have a pretty hostile fight and that it's probably not worth it at the end of the day."

When Standard Life announced it was selling most of its 31.5 per cent stake in Bank of Scotland, Sir Bruce reacted angrily to the surprise news that his largest shareholder was bowing out.

But the hatchet has now been buried. After Sir Bruce's protests, Standard agreed not to sell the shares as a block to another investor or through a bought deal by an investment bank.

Instead they are to be marketed in an international offer by BZW, which is selling 29 per cent of the bank for Standard, which is keeping another 2.5 per cent as an investment. The offer of 351 million shares includes 46 million to be used to stabilise the market.

BZW is to allocate the shares according to price but with special preference for large investing institutions that will be long-term holders.