12th Mar 2015 09:14
LONDON (Alliance News) - TSB Banking Group PLC shares shot higher on Thursday morning after the company confirmed it has received a preliminary takeover offer of 340 pence per share from Spanish banking group Banco de Sabadell SA.
The offer values TSB at GBP1.75 billion.
TSB said its board has indicated to Sabadell that it would be willing to recommend an offer at the proposed price, subject to the pair reaching agreements on other terms and conditions of the offer, on which the board has now entered talks with Sabadell.
TSB said any takeover by Sabadell would be dependent on the completion of due diligence and on Lloyds Banking Group PLC, TSB's majority shareholder, agreeing to an irrevocable undertaking in respect of its entire stake in TSB.
TSB shares rose 27% on the news to 335.65 pence, easily the best performer in the FTSE 250 on Thursday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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