Alliance & Leicester says it will consider serious takeover offers that offer a good deal for shareholders after posting a fall in interim pre-tax profits.
There has been media speculation the Abbey National is drawing up plans to merge with the Alliance & Leicester.
Alliance & Leicester's pre-tax profit for the six months to June 30th was $208 million - $38 million lower than the same period last year. Gross mortgage lending was up 64 per cent to £2.3 billion sterling, reflecting the property boom.
Executive chairman Mr John Windeler said the mortgage bank remains on course to reach its strategic targets. "These targets are challenging but achievable and, at this early stage, there is clear evidence that we are starting to deliver on our commitments.
"There is a new momentum in Alliance & Leicester, which we will continue to build on for the benefit of our shareholders, customers and staff."
Managing director Mr Peter McNamara said Alliance & Leicester has been regularly mentioned with regard to potential consolidation in the sector.
"We believe that increased shareholder value can best be delivered by implementing our strategy. We have also consistently said that, as a board, we have a duty to consider serious offers for the business should any occur which clearly represent superior returns to our shareholders," he said.
PA