Royal Bank of Scotland and Birmingham Midshires Deal in Flux

The proposed takeover of Birmingham Midshires Building Society by Royal Bank of Scotland has hit a snag, as Halifax's counterbid of $780 million has emerged. Despite initial intentions to stick to the original $630 million plan, both parties are now reconsidering their strategies. The deal's fate remains uncertain, with the Royal Bank insisting on sticking to their original proposal while acknowledging the potential impact of the Halifax's bid.

Key Takeaways:

• Royal Bank of Scotland's original takeover plan of Birmingham Midshires Building Society, valued at $630 million, is still on the table despite the emergence of a counterbid from Halifax.
• Halifax's $780 million bid has thrown the deal into doubt, with both Royal Bank and Birmingham Midshires considering their next moves.
• The Royal Bank is working closely with the board of Birmingham Midshires to complete the deal, despite the potential impact of the higher Halifax bid.
• The deal is expected to preserve 2,000 jobs and maintain the society as an independent business, according to a Royal Bank spokesman.
• Tony McGarahan, a representative of Birmingham Midshires, confirmed that the timetable for putting the Royal Bank's proposals to members in April remains unchanged, with no indication of an increased offer.
• The Royal Bank is not commenting on reports that they would seek reimbursement from Birmingham Midshires for the costs incurred in putting the deal together, estimated in the tens of millions of pounds.

Statistics:

• Original takeover plan: $630 million
• Counterbid: $780 million
• Number of jobs preserved: 2,000
• Potential costs incurred in the deal: tens of millions of pounds

Sources:

• "Royal Bank of Scotland and Birmingham Midshires Deal in Flux" (unattributed source)
• [Note: As the text does not specify the source of the pricings and figures mentioned, and there is limited external attribution, inclusion of external references is not possible in this instance.]