The Aussie bank, which already owns Clydesdale, Yorkshire and Northern Banks in the UK and National Irish in Ireland, is prohibited from buying its rivals at home but made an offer to Abbey at the end of June, said insiders.
Abbey National’s share price has fallen 22 per cent over the last month and Abbey National chief executive officer, Ian Harley, said he was open to partnerships following the bank’s announcement of serious loan losses on 10 June.
Abbey National has been under pressure from investors to focus on the mortgage and savings markets in the U.K. after expansion into riskier assets left it with investments in Enron Corp., Tyco International Ltd. and WorldCom Inc.
