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Clydesdale 'makes an offer to RBS for Williams & Glyn' | Clydesdale 'makes an offer to RBS for Williams & Glyn' |
(about 4 hours later) | |
Clydesdale Bank has reportedly made an offer for Williams & Glyn, the banking business that RBS failed to sell to Santander. | Clydesdale Bank has reportedly made an offer for Williams & Glyn, the banking business that RBS failed to sell to Santander. |
A person familiar with the talks, which were first reported by the Financial Times, confirmed the approach, although neither bank would comment officially. | A person familiar with the talks, which were first reported by the Financial Times, confirmed the approach, although neither bank would comment officially. |
RBS said: "There is interest in the business and this remains the case." | RBS said: "There is interest in the business and this remains the case." |
Santander last month ended discussions with RBS about the sale, which the European Commission had ordered. | Santander last month ended discussions with RBS about the sale, which the European Commission had ordered. |
That order related to the bank's £45bn government bailout at the height of the financial crisis in 2008. | That order related to the bank's £45bn government bailout at the height of the financial crisis in 2008. |
European regulators had demanded a sale of Williams & Glyn be completed by 2013 to prevent RBS, Britain's biggest lender to small businesses, from having an unfair advantage and posing a systemic threat to the UK economy. | European regulators had demanded a sale of Williams & Glyn be completed by 2013 to prevent RBS, Britain's biggest lender to small businesses, from having an unfair advantage and posing a systemic threat to the UK economy. |
However, the bank blamed the problem of creating a separate IT system at a cost of about £1.5bn for the delays in selling the business. | However, the bank blamed the problem of creating a separate IT system at a cost of about £1.5bn for the delays in selling the business. |
The sale is regarded by many analysts as necessary for RBS to finally shake off the legacy of the financial crisis and return to full private ownership. | The sale is regarded by many analysts as necessary for RBS to finally shake off the legacy of the financial crisis and return to full private ownership. |
Challenger | Challenger |
Santander pulled out of talks to buy the unit last month because of a disagreement over the price, sources said. | Santander pulled out of talks to buy the unit last month because of a disagreement over the price, sources said. |
The resurrected Williams & Glyn will have 300 branches, 1.8 million customers, loans worth £20bn and deposits of £24bn. That makes it one of the UK's largest prospective "challenger" bank brands, with the potential to win market share in the small business banking sector from Lloyds and RBS itself. | |
Clydesdale bank was floated on the London Stock Exchange in February by National Australia Bank, which still owns a controlling stake. | Clydesdale bank was floated on the London Stock Exchange in February by National Australia Bank, which still owns a controlling stake. |
Clydesdale shares have risen more than 40% in that time, valuing the bank at almost £2.4bn. | Clydesdale shares have risen more than 40% in that time, valuing the bank at almost £2.4bn. |
Shares in RBS, which reports third quarter results on Friday, have fallen by 36% since the start of the year. | Shares in RBS, which reports third quarter results on Friday, have fallen by 36% since the start of the year. |
The Williams & Glyn brand was created in 1969 after RBS merged with the National Commercial Bank and was used in 326 branches in England and Wales. | The Williams & Glyn brand was created in 1969 after RBS merged with the National Commercial Bank and was used in 326 branches in England and Wales. |
It disappeared in 1985 after being replaced by the RBS brand. | It disappeared in 1985 after being replaced by the RBS brand. |
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