UK Bank Set To Be Bought
The Alliance and Leicester has been sold, subject to final confirmation, to Santander. This according to latest reports claiming an agreement had been reached.
The deal is worth over one and a quarter billion pounds and will be a share purchase with Alliance and Leicester shareholders receiving one Santander share for every three of their existing Alliance and Leicester ones. This is seen to be an attractive deal since it values the UK bank a third higher than its share price would indicate.
It is understood that the Alliance and Leicester will be merged into existing Santander operations in the UK, meaning a potential loss of some jobs but ultimately a stronger organisation. Santander has seen good returns in the last 12 months, unlike many other financial organisations and it is this that has put them in a position to pick up business such as the Alliance and Leicester.