Newspaper article The Evening Standard (London, England)

Lloyds TSB on Three-Year High as Bid Gossip Grows; MARKET REPORT

Newspaper article The Evening Standard (London, England)

Lloyds TSB on Three-Year High as Bid Gossip Grows; MARKET REPORT

Article excerpt

Byline: MICKEY CLARK

SHARES of Lloyds TSB have climbed to their highest level in more than three years as talk that a bidder is about to emerge reaches a crescendo.

The price briefly touched a peak of 5441/2p yesterday in another day of heavy turnover that saw more than 64 million shares change hands. Once again, the name being linked to the Black Horse bank is Spain's Banco Bilbao Vizcaya Argentaria.

City speculators have been braced for another round of consolidation within the European banking community for some time.

They say BBVA has turned its attention to Lloyds after deciding against a move on Italy's Banca Nazionale del Lavoro.

BBVA is clearly looking to expand in Europe. It currently boasts 35 million customers in 32 countries and employs 91,000 staff.

Another name now being linked to Lloyds TSB is Dutch bank ABN Amro, which already has a presence in this country through City stockbroker Hoare Govett.

However, Lloyds has also been linked with American banks Citigroup and Wells Fargo in the past few months.

Brokers say buyers of Lloyds TSB shares cannot lose. Not only would they soar if a bidder chose to make a move, but they also continue to yield almost 7%, making Lloyds by far and away the most attractively rated bank in the runup to the annual reporting season.

Speculators have already put a price on the shares of between 650p and 700p each, which values the group at [pounds sterling]39 billion.

Marks & Spencer sprang back into life, climbing back above the 500p level and making the shares among the best performers in the Footsie 100 index.

The lock-in on Brandes Investment Partners' remaining near-7% stake is due to expire tomorrow, and is likely to mark the end of its relationship with the rejuvenated high street retailer. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.