Abbey Nat. Share Discussion Threads

[timc] 26/7/2004 07:18

Not even hear the terms yet.But the consensus in the press was all around ^the 5.80 mark, in cash/ shares.I think the drivers of the stock now will be just what percentage in shares and whether someone else steps to the table.
Im holding until further news comes out.Remember its in play now, and its not clera what Citigroup/other banks want to do yet.

[shirishg] 26/7/2004 07:13

Post removed by ADVFN

[shumba] 26/7/2004 07:03

Immediate mark dow but I recon we will finish positive today,£6 ish

[lamborghini_2] 26/7/2004 06:50

brugha

not shares, but cfds,but highly geared, cross fingers. My heart is racing today. a lost today will take nearly 4-5 months of hard work down the drain.

thanks anyway

[brugha] 26/7/2004 06:40

lamb

Given the number of shares you claim to own I'm not surprised.

Good luck

[lamborghini_2] 26/7/2004 06:35

Hi folks

mark down with a gap or another rally. i personnaly think 600p may be reach.

[feelinlucky] 26/7/2004 06:28

Im sure the price will be underpinned by others lookin to jump on the bandwagon.

5.60 with an eventual close up.

[dm1] 26/7/2004 06:26

AFX: 26/07/04

MADRID (AFX) - Banco Santander Central Hispano SA could finance its planned
about 13 bln eur acquisition of Abbey National PLC through a cash call and by
selling some of its industrial stakes, Expansion reported, citing unnamed
sources close to the deal.
At March 31, SCH had unrealised capital gains of 4.37 bln eur, the newspaper
said.
Yesterday, both SCH and Abbey's boards met to discuss the operation, which
if it goes ahead, will be the biggest cross-border transaction between two
European banks and will create the world's eight biggest bank in terms of market
capitalisation.
The banks are expected to make a joint statement in London this morning,
with analysts noting that SCH is also likely to release an advance of first half
results due Wednesday.
Expansion said the deal is expected to generate synergies of around 500 mln
eur in three years.
SCH is expected to make a part stock, part cash offer for Abbey.
[e-mail]
jdy/jfr

[brugha] 26/7/2004 06:24

Down to 560p

Holding for a counterbid :)

[shirishg] 26/7/2004 06:23

Post removed by ADVFN

[feelinlucky] 26/7/2004 06:19

It may fall on opening, but I personally will hold out..

The story has yet to unfold!!!

I see every man and his dog after this one.

I believe an eventual 7 squid will secure this bank.

[abcd1234] 26/7/2004 05:54

From the Guardian today re counterbid...........

Abbey agrees to Spanish offer

Santander set to announce £8.5bn deal with British bank today but Citigroup may lead counter-bids

Jill Treanor
Monday July 26, 2004
The Guardian

Abbey National will today announce that it has agreed to be taken over by Spain's largest bank in an £8.5bn deal which will create the world's eighth largest banking group.
However, even as executives from Spain's Banco Santander Central Hispano were preparing to travel to London to present their record-breaking deal to the City, expectations were mounting that rival banks were preparing counter offers for the struggling Abbey business.

Speculation will immediately centre on Citigroup, the huge American bank, which is understood to have held abortive takeover talks with Abbey earlier this year..............

[abcd1234] 26/7/2004 05:47

From the Independent today..............


Britain's 'big four' weigh up chances for counter offer
By Katherine Griffiths and Rachel Stevenson
26 July 2004


Britain's largest banks will this week be weighing up whether they can get a possible counter-offer for Abbey National past the UK's competition authorities.

Britain's "big four" banks would like to add Abbey - the No 6 - to their empires. Abbey is the second-largest mortgage lender in the UK, but its larger rivals have held off from making a bid after Lloyds TSB was blocked from going through with an £18m deal to buy Abbey in 2001. The Competition Commission ruled at the time that the deal would have left the enlarged bank with too great a share of the personal and business current account markets.

The most likely bank to risk a wrangle with the commission is Royal Bank of Scotland. RBS has made it clear it would like to acquire Abbey to boost its position in the UK mortgage market. It would easily have the financial firepower to act quickly to make a counter-bid, even at the substantial premium it would have to offer to top Santander's agreed deal.

With a market capitalisation of more than £40bn, RBS, which bought NatWest in 2000, is four times the size of Abbey. Fred Goodwin, RBS's chief executive, has said he would not hesitate to ask investors for extra firepower if he finds an attractive bank to buy.

While Lloyds TSB is more stretched financially, interest could also come from this quarter, and it is understood that the bank will be carefully examining its options.

For Lloyds and RBS, encouragement has come from City analysts who claim that the competitive environment has been fundamentally altered by the creation of HBOS, which has has proved to be a powerful rival to the big four. Barclays and HSBC are also in a position to make an offer. It is understood Lloyds TSB at least does not believe the issues raised by the Competition Commission in 2001 have altered significantly.

An alternative bid could come from another foreign bank. Citigroup, the world's largest financial services group, looks the most likely. It is keen to establish a retail banking presence in the UK. Citigroup bought the investment banking business Salomon in the UK, and like Santander, it would not have to worry about falling foul of the competition regulators.


The Independent
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[abcd1234] 26/7/2004 05:37

From the Times today re 580p............


Speculators are thought likely to hold out for possible rival bids if the Santander bid is valued any lower (than £5.80)
in the market.

Lloyds TSB, Barclays and Royal Bank of Scotland may look at the company, although any offer would risk being blocked by the competition authorities. Other potential bidders include Citigroup and Bank of America. A Santander bid would probably be looked at by EU competition authorities. Santander owns a 5 per cent stake in Royal Bank of Scotland, but it is understood that the Scottish bank has no role in Santander's move for Abbey.

The Times
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[maplinrover] 25/7/2004 22:16

The board of ANL seem keen on a bid (any jobs for the boys in the enlarged group?) and could use tomorrow's interim announcement to slant things its way. Look for anything being said about future prospects. If digested don't forget the pinch of salt.
PS just what are non-executive directors for?

[a77] 25/7/2004 22:15

Heather Timmons NYT Monday, July 26, 2004
LONDON Banco Santander Central Hispano of Spain agreed Sunday night to buy Abbey National, a British bank, in a mostly stock deal worth more than £8.5 billion, according to two executives close to the negotiations.
.
The $15.6 billion deal, expected to be announced Monday morning, will create the world's eighth-largest bank with a market capitalization of about $62 billion and a major presence in Latin America, Spain, England and Northern Ireland. Abbey National's board met Sunday afternoon and was expected to approve the offer, these executives said Sunday evening.

[the knowing] 25/7/2004 21:47

DJ Banco Santander,Abbey Natl Reach GPB8.5Bln Deal-Sources
LONDON (Dow Jones)--Spain&aposs Banco Santander Central Hispano (SAN.MC) is expected to unveil an agreement to buy Britain&aposs Abbey National PLC (ANBB) for GPB8.5 billion Monday, people familiar with the situation said.
Banco Santander is proposing a mostly stock deal which will value Abbey at about 580 pence a share, based on Santander&aposs Thursday closing stock price, and include about 25 pence a share in cash, the sources said. Santander&aposs stock fell 4.1% to EUR8 in trading Friday. Based on the Friday stock price, the offer for Abbey would be valued at about 565 pence per share, the sources said.
While an eleventh-hour hitch could derail an announcement, boards of directors of both companies approved an agreement in principle Sunday.

[brugha] 25/7/2004 21:03

Helmets on!!!

On the basis of 560p bid I'd say we might fall

Think I'll hold for other bidders though :))

[dm1] 25/7/2004 21:01

Excerpt from BBC webpage news:

But newspaper reports suggested that the bid could flush out an alternative approach.

While some papers suggested Citigroup could be the suitor, others said Lloyds TSB could renew its advances - and some even believe a German bank could be ready to step in.

For full story:

[feelinlucky] 25/7/2004 19:42

Thanx Maplin.

[maplinrover] 25/7/2004 19:07

feelinlucky
Have been away but to answer your question re the calculation. It amounts to dividing the value of the bid by the 1.475 billion ordinary shares in issue. I haven't access to the figures other than the summary given by ADVFN (click on financials) which shows a small number of preference and minority interests which I have ignored. Because of the paper element in the bid, its value will be based on SCH's last share price. If that dips so does the value of the bid.
At £8.2 billion and apparent agreement from ANL's board then it's up to the shareholders. The question now is what will the institutions do? I do not expect good news from tomorrow's interims so prospects do not look too bright.

[wendsworth] 25/7/2004 18:06

I think the best thing is to sit back and wait for things to develop .

Have been in bid situations previously in chemical sector and IS services and with the exception of Storehouse (the Green factor !) have always benefitted by not selling out - despite being tempted !

We know there is going to be consolidation in the sector and ANL is ripe for picking !

I reckon its 'heads you win and tails you win' - if you're a holder that bought in the 450 to 500p range.

[katoema] 25/7/2004 17:43

Noted, now back to stock news, as I am live with the US.