Alliance & Leicester Shareholders Seek Rival Bid, FT Reports

By Lenka Ponikelska

July 15 (Bloomberg) -- Alliance & Leicester Plc shareholders sought a rival bid after the lender agreed to be bought by Banco Santander SA for 1.26 billion pounds ($2.6 billion), seven months after it gave up a deal with the Spanish bank that valued it at more than twice as much, the Financial Times reported.

Alliance & Leicester jumped to 335 pence yesterday, 17 pence more the per-share price implied by Santander's all-share offer, as investors speculated other lenders may bid, the newspaper said. Only few banks, including Lloyds TSB Group Plc and National Australia Bank Ltd., which owns Yorkshire Bank and Clydesdale Bank, would be able to challenge Santander, the FT said. It was questionable whether they would bid, the newspaper said, citing unidentified banking sources.

The Financial Service Authority monitored the talks but has not pressed the lender to accept the bid, the newspaper said.

To contact the reporter on this story: Lenka Ponikelska in London lponikelska1@bloomberg.net