British banks Halifax and Bank of Scotland announced today they were in talks over a merger of equals without a premium for either side.
Any tie-up would be based on a one-for-one share exchange, the pair said in a joint statement.
The move is the latest round in a long-running fight in the British banking sector - dominated by the so-called 'big four': Barclays, HSBC, Lloyds and Royal Bank of Scotland.
Bank of Scotland is struggling to keep up with the pace of consolidation. Its hope of merging with home-loan provider Abbey National were all but dashed in February when Abbey terminated talks after Lloyds TSB launched a rival bid.
Today's announcement propelled the two banks to the top of the London Stock Exchange's leader board, Bank of Scotland gaining 5.1 per cent to 780p and Halifax jumping 4.3 per cent to 770p.
AFP