Midshires Seeks Permission to Talk to Halifax Amid Stalemate with Royal Bank

Birmingham Midshires has written to Royal Bank of Scotland, seeking permission to engage in discussions with Halifax after the latter made a rival offer of £780m for the building society. This move is a result of the stalemate that has arisen from the original bid by Royal Bank of Scotland, which offered £630m in August. Midshires' board is currently bound by a agreement signed with Royal Bank, which prohibits the exchange of information with third parties and requires them to present Royal Bank's proposals to their members.

Key Takeaways:

• Birmingham Midshires has sent a letter to Royal Bank of Scotland requesting permission to engage in discussions with Halifax after the latter made a £780m rival bid.
• The original agreement between Midshires and Royal Bank of Scotland prohibits the exchange of information with third parties and requires Midshires to present Royal Bank's proposals to their members.
• Royal Bank of Scotland acknowledged receipt of Midshires' letter and stated that they are considering the request.
• At the time of the Halifax bid, Royal Bank of Scotland said the agreement between Midshires and themselves was legally binding.
• Royal Bank of Scotland also stated that they would not, in any circumstances, increase their offer for Midshires.
• A Midshires spokesperson denied any intention to break the agreement with Royal Bank and is instead relying on "common sense to prevail".

Statistics:

• The original bid by Royal Bank of Scotland was £630m.
• The rival offer made by Halifax is £780m.
• Midshires' members could potentially receive an additional windfall of £150 each if Halifax wins the bid.

Sources:

• Lea Paterson, "Birmingham Midshires seeks to talk to Halifax as bid stalemate deepens", (Source not provided)
• "Birmingham Midshire's deal with Royal Bank of Scotland is 'not on' if proposal from Halifax is successful", (Source not provided)
• Royal Bank of Scotland, " Royal Bank statement on Birmingham Midshires bid", (Source not provided)
• Birmingham Midshires, "No intention to break agreement with Royal Bank" (Source not provided)