This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/world/7504822.stm

The article has changed 17 times. There is an RSS feed of changes available.

Version 2 Version 3
Santander makes A&L takeover bid Santander makes A&L takeover bid
(10 minutes later)
Abbey owner Santander has made a takeover offer for Alliance & Leicester (A&L) the BBC's business editor Robert Peston has learned.Abbey owner Santander has made a takeover offer for Alliance & Leicester (A&L) the BBC's business editor Robert Peston has learned.
Shares in A&L have soared by more than 40% after it disclosed that it had received a takeover bid, valuing the bank at about £1.3bn.Shares in A&L have soared by more than 40% after it disclosed that it had received a takeover bid, valuing the bank at about £1.3bn.
The firm, which has not confirmed the name of the possible buyer, said it was in "advanced" discussions.The firm, which has not confirmed the name of the possible buyer, said it was in "advanced" discussions.
Our correspondent says the deal may pose competition issues.Our correspondent says the deal may pose competition issues.
"The takeover – if successful – would be a great relief to the City watchdog, the Financial Services Authority – because it believes big banks are more robust in these uncertain times," he said."The takeover – if successful – would be a great relief to the City watchdog, the Financial Services Authority – because it believes big banks are more robust in these uncertain times," he said.
"However Alliance & Leicester has been a source of important competition in the UK's relatively concentrated banking market," he said."However Alliance & Leicester has been a source of important competition in the UK's relatively concentrated banking market," he said.
"So there will be some concern that the disappearance of A&L as an independent entity would leave too much power in the hands of the big banks.""So there will be some concern that the disappearance of A&L as an independent entity would leave too much power in the hands of the big banks."
'No certainty''No certainty'
A&L said the offer being discussed was for 317 pence per share - but it warned that it could not be sure that a deal would be "forthcoming".A&L said the offer being discussed was for 317 pence per share - but it warned that it could not be sure that a deal would be "forthcoming".
Like other British lenders, Alliance & Leicester has seen its share price slump due to the credit crunch.Like other British lenders, Alliance & Leicester has seen its share price slump due to the credit crunch.
Alliance said it had disclosed details of the bid "without the consent" of the suitor.Alliance said it had disclosed details of the bid "without the consent" of the suitor.
It added: "There can be no certainty that an offer will be forthcoming or as to its terms."It added: "There can be no certainty that an offer will be forthcoming or as to its terms."
Unlike other leading UK banks and mortgage lenders, Alliance & Leicester has not had to tap its shareholders for additional cash to shore up its balance sheet.Unlike other leading UK banks and mortgage lenders, Alliance & Leicester has not had to tap its shareholders for additional cash to shore up its balance sheet.
Alliance saw its annual profits fall 30% last year amid turbulence in credit markets, which has forced it to write down the value of mortgage-backed investments by nearly £400m.Alliance saw its annual profits fall 30% last year amid turbulence in credit markets, which has forced it to write down the value of mortgage-backed investments by nearly £400m.
Like other lenders, Alliance has reacted to the credit turmoil by reducing the number of mortgages it sells and pushing up the interest rates.Like other lenders, Alliance has reacted to the credit turmoil by reducing the number of mortgages it sells and pushing up the interest rates.
Following the news of the bid approach, Alliance's shares rose 93p, or 42%, to 312.25p. Shares in other lenders soared on the news, with Bradford and Bingley shares rising by more than 25%.Following the news of the bid approach, Alliance's shares rose 93p, or 42%, to 312.25p. Shares in other lenders soared on the news, with Bradford and Bingley shares rising by more than 25%.