TSB has confirmed it has received a takeover offer from Spanish bank Sabadell, valuing the challenger bank at £1.7 billion.
Banco Sabadell has offered 340p a share for the bank, which is 50 per cent owned by taxpayer-backed Lloyds. TSB, which floated last June for 260p a share, jumped 26 per cent following the announcement, to 333.32p.
Following preliminary discussions, TSB said it would be “willing to recommend” the offer at this price “subject to reaching agreement on the other terms and conditions of any offer”.
TSB said: “Based on preliminary discussions, the board of TSB believes that Sabadell could support and accelerate TSB’s retail growth strategy and accelerate the expansion of TSB’s presence in the SME sector.
“Sabadell recognises the achievement of TSB’s management