Pattullo throws weight behind BoS bid for NatWest

SIR BRUCE Pattullo, the highly respected former Governor or chairman of the Bank of Scotland, yesterday threw the full weight of his authority behind Peter Burt, the BoS chief executive, in his hostile bid for NatWest.

Sir Bruce, who retired in May last year, said that those who claim he would never have sanctioned such a risky undertaking are "making mischief". "It was I who made the original approach to Bob [Lord] Alexander [then NatWest chairman]. Bank of Scotland has been tracking the situation very carefully for 20 months," he told The Independent yesterday. "I am totally supportive of what Peter Burt and Jack Shaw [the BoS chairman] are trying to do."

Although, when the initial approach was made in 1997, it was to see whether there was any common ground for an agreed deal, the circumstances had changed. The Bank of Scotland's hostile bid for NatWest was precipitated by the decision of Sir David Rowland, the new NatWest chairman, to launch an agreed takeover for Legal & General, the life insurance group.

The Bank of Scotland now finds itself locked in a three-way bid battle with its arch-rival RBS.

"It was the inevitable consequence of the misconceived move for L&G which was a repetition of past mistakes. Taking the ball away from [Sir David's] feet was bound to create hostility." Sir Bruce believes the hostility is mainly on the part of the head office team at NatWest's City headquarters but was not shared by senior middle management and below.

The Bank of Scotland, which is looking in a stronger position than expected after RBS formally entered the fray on Monday, is understood to be discussing with its advisers about bring forward the pounds 1.20 special dividend it has promised to pay out next year from some of the disposal proceeds. RBS is already under pressure to top up its bid for NatWest after seeing its shares fall 10 per cent since it launched its offer on Monday morning. The RBS offer was worth pounds 14.78 yesterday, 151p below the headline value of pounds 16.30 of the Bank of Scotland, a premium of 12.5 per cent to NatWest.

NatWest said it would call off its pounds 1bn share buy-back if the Royal Bank posts its takeover document as expected next week. The Office of Fair Trading decided yesterday to postpone its decision on whether to refer the bid to the Competition Commission until 29 December, 15 working days after the original deadline of 6 December.

Outlook, page 21

Start your day with The Independent, sign up for daily news emails
Arts and Entertainment
Attenborough with the primates
tvWhy BBC producers didn't want to broadcast Sir David Attenborough's famed Rwandan encounter
News
people
News
Campbell: ‘Sometimes you have to be economical with the truth’
newsFormer spin doctor says MPs should study tactics of leading sports figures like José Mourinho
Sport
football
ebooks
ebooksA special investigation by Andy McSmith
Life and Style
Alexander McQueen's AW 2009/10 collection during Paris Fashion Week
fashionMeet the collaborators who helped create the late designer’s notorious spectacles
News
i100
News
Perry says: 'Psychiatrists give help because they need help. You would not be working in mental health if you didn't have a curiosity about how the mind works.'
people
Life and Style
Stepping back in time: The Robshaws endured the privations of the 1950s
food + drinkNew BBC series savours half a century of food in Britain
News
Google celebrates St David's Day 2015
newsWales' patron saint is believed to have lived in the 6th century
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

SThree: HR Benefits Manager

£40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...

Recruitment Genius: Office Manager / Financial Services

£30000 - £37000 per annum: Recruitment Genius: Established in 1999, a highly r...

Jemma Gent: Year End Accountant

£250-£300 Day Rate: Jemma Gent: Are you a qualified accountant with strong exp...

Jemma Gent: Management Accountant

£230 - £260 Day Rate: Jemma Gent: Do you want to stamp your footprint in histo...

Day In a Page

War with Isis: Fears that the looming battle for Mosul will unleash 'a million refugees'

The battle for Mosul will unleash 'a million refugees'

Aid agencies prepare for vast exodus following planned Iraqi offensive against the Isis-held city, reports Patrick Cockburn
Yvette Cooper: We can't lose the election. There's too much on the line

Yvette Cooper: We can't lose the election. There's too much on the line

The shadow Home Secretary on fighting radical Islam, protecting children, and why anyone in Labour who's thinking beyond May must 'sort themselves out'
A bad week for the Greens: Leader Natalie Bennett's 'car crash' radio interview is followed by Brighton council's failure to set a budget due to infighting

It's not easy being Green

After a bad week in which its leader had a public meltdown and its only city council couldn't agree on a budget vote, what next for the alternative party? It's over to Caroline Lucas to find out
Gorillas nearly missed: BBC producers didn't want to broadcast Sir David Attenborough's famed Rwandan encounter

Gorillas nearly missed

BBC producers didn't want to broadcast Sir David Attenborough's famed Rwandan encounter
Downton Abbey effect sees impoverished Italian nobles inspired to open their doors to paying guests for up to €650 a night

The Downton Abbey effect

Impoverished Italian nobles are opening their doors to paying guests, inspired by the TV drama
China's wild panda numbers have increased by 17% since 2003, new census reveals

China's wild panda numbers on the up

New census reveals 17% since 2003
Barbara Woodward: Britain's first female ambassador to China intends to forge strong links with the growing economic superpower

Our woman in Beijing builds a new relationship

Britain's first female ambassador to China intends to forge strong links with growing economic power
Courage is rare. True humility is even rarer. But the only British soldier to be awarded the Victoria Cross in Afghanistan has both

Courage is rare. True humility is even rarer

Beware of imitations, but the words of the soldier awarded the Victoria Cross were the real thing, says DJ Taylor
Alexander McQueen: The catwalk was a stage for the designer's astonishing and troubling vision

Alexander McQueen's astonishing vision

Ahead of a major retrospective, Alexander Fury talks to the collaborators who helped create the late designer's notorious spectacle
New BBC series savours half a century of food in Britain, from Vesta curries to nouvelle cuisine

Dinner through the decades

A new BBC series challenged Brandon Robshaw and his family to eat their way from the 1950s to the 1990s
Philippa Perry interview: The psychotherapist on McDonald's, fancy specs and meeting Grayson Perry on an evening course

Philippa Perry interview

The psychotherapist on McDonald's, fancy specs and meeting Grayson Perry on an evening course
Bill Granger recipes: Our chef recreates the exoticism of the Indonesian stir-fry

Bill Granger's Indonesian stir-fry recipes

Our chef was inspired by the south-east Asian cuisine he encountered as a teenager
Chelsea vs Tottenham: Harry Kane was at Wembley to see Spurs beat the Blues and win the Capital One Cup - now he's their great hope

Harry Kane interview

The striker was at Wembley to see Spurs beat the Blues and win the Capital One Cup - now he's their great hope
The Last Word: For the good of the game: why on earth don’t we leave Fifa?

Michael Calvin's Last Word

For the good of the game: why on earth don’t we leave Fifa?
HIV pill: Scientists hail discovery of 'game-changer' that cuts the risk of infection among gay men by 86%

Scientists hail daily pill that protects against HIV infection

Breakthrough in battle against global scourge – but will the NHS pay for it?