HBOS abandons Abbey takeover ambitions, clears way for SCH

0 Comments | AFP, September, 2004

LONDON (AFP) — HBOS said it had decided against bidding for the British mortgage bank Abbey National, clearing the way for an agreed offer from Spain's Banco Santander Central Hispano (SCH).

In a brief statement, HBOS said it believed the "shareholder value inherent in its existing prospects is superior to that likely to be achieved through this combination."

HBOS, which was formed by the merger of home-loan specialist Halifax and Bank of Scotland three years ago, had said on August 2 it was considering launching a counter-bid for Abbey National.

The bank said that although it saw a "very substantial opportunity to create synergies, and a strong competition case with which to engage the regulators", it had decided not to proceed with an offer.

Abbey...