The deal would be unlikely to be blocked on unfair competition grounds, but Barclays is thought to be ready to resume merger talks with the financial services group when share prices stabilise, although both companies have refused to comment.
Christopher Rodrigues, chief executive of B& B is said to be keen to strike a friendly deal with a bigger market player while the company is still protected from hostile takeovers.
Under B&B’s demutalisation terms, the company is open to agreed mergers until 2005 and Barclays, worth £30 billion, is thought to be interested in the ex-building society’s mortgage book.
B&B is also the fourth largest UK estate agent, has built up The Marketplace, the country’s biggest chain of financial advisers, owns mortgage internet broker Charcol and is a strong player in the regional UK mortgage markets.
