NatWest Abandons Hope of Completing Takeover of Legal & General
NatWest formally abandoned its proposed [pound]10.7bn takeover of Legal & General, citing an unenthusiastic response from institutional investors and a sharp rise in Bank of Scotland's bid following the proposed takeover's emergence. The takeover had been met with skepticism, with NatWest's share price sliding from [pound]12.41 to [pound]10.46 before it regained momentum, closing at [pound]14.35 after Bank of Scotland's bid. NatWest's chairman, Sir David Rowland, expressed disappointment and maintained that the Bank of Scotland's approach undervalued the company.
Key Takeaways:
- NatWest abandoned its proposed [pound]10.7bn takeover of Legal & General, citing an unenthusiastic response from institutional investors.
- The takeover had received a lukewarm response, with NatWest's share price sliding from [pound]12.41 to [pound]10.46 before recovering.
- Bank of Scotland's bid for NatWest rose sharply following the proposed takeover's emergence, closing at [pound]14.35.
- NatWest's chairman, Sir David Rowland, publicly maintained that the Bank of Scotland's approach undervalued the company.
- The takeover's lapse marks a significant U-turn for NatWest, following its earlier efforts to pursue the deal.
- One shareholder expressed concern about potential job losses and reduced services at NatWest if the takeover were to proceed.
- L&G expressed disappointment at the deal's probable lapse, but acknowledged the realistic nature of NatWest's decision.
Statistics:
- [pound]10.7bn: The proposed takeover amount of Legal & General by NatWest.
- [pound]12.41: The initial share price of NatWest following the emergence of the proposed deal.
- [pound]10.46: The share price decline of NatWest before recovering after Bank of Scotland's bid.
- [pound]14.35: The closing share price of NatWest after Bank of Scotland's bid.
Sources:
- "NatWest abandons hope of completing proposed £10.7bn takeover of Legal & General", The Financial Times Limited, 1999.