NatWest's Pounds 10.75bn Takeover Deal Collapses Amid Bank of Scotland's Pounds 20.5bn Hostile Bid

Strategic Insights -

NatWest's planned Pounds 10.75bn takeover by Legal & General (L&G) has been left in disarray following Bank of Scotland's Pounds 20.5bn hostile bid for the high street bank. The collapse of the deal has sent L&G's share price plummeting by 17% and raised questions about the future of the insurer.

Key Takeaways:

  • Bank of Scotland's hostile bid for NatWest values the bank at Pounds 20.5bn, surpassing NatWest's planned takeover by L&G, which was valued at Pounds 10.75bn.
  • The collapse of the NatWest-L&G deal has sent L&G's share price down by 17%, with the insurer ending the day at 182p.
  • City analysts believe a "for sale" sign now hangs over L&G, with Abbey National, Halifax, Allianz, Axa, and Aegon being named as potential bidders.
  • L&G is now considered a sought-after acquisition target, with institutional shareholders expecting the insurer to attract a multibillion-pound bid.
  • An overseas bid could value L&G at up to 235p a share, compared to the 210p offered by NatWest, but no UK bidder is expected to surpass the 210p mark.
  • Without a bid, L&G may be worth only between 140p and 150p.

Statistics:

  • L&G's share price slumped by 17% following the collapse of the NatWest deal.
  • L&G's share price ended the day at 182p.
  • Bank of Scotland's hostile bid for NatWest values the bank at Pounds 20.5bn.

Sources:

  • "Bank of Scotland hands NatWest a European divorce" by Patrick Collinson, The Guardian, [no date]
  • "L&G ends the day down 5% at 182p" by Patrick Collinson, The Guardian, [no date]
  • "NatWest's Pounds 10.75bn takeover deal collapses amid Bank of Scotland's Pounds 20.5bn hostile bid" by Patrick Collinson, The Guardian, [no date]