Stock Groups

Britain’s mid-sized Metro Bank gets Carlyle bid approach -Breaking


© Reuters. FILE PHOTO – People pass a Metro Bank in London on May 22, 2019, Britain. REUTERS/Hannah McKay/File photo

By Muvija M

(Reuters) – Metro Bank announced that it received a takeover offer from U.S. equity firm Carlyle. This sent its battered shares up to 31% higher in a sign there is growing interest in Britain’s small banks.

Metro Bank’s market capitalisation was 178 million pounds ($242million) on Wednesday closing. The bank said it was working with Carlyle.

It added that there wasn’t any certainty of an offer and advised shareholders not to act.

Metro Bank’s shares fell by 57% between February 2020 and February 2020. This was due to low interest rates, competition and poor performance. However, they were still up 29% at 1125 GMT today and on track for their strongest ever day.

Metro Bank’s 2019 accounting errors led to the resignation of its top executives and a substantial drop in share prices.

Recently, British banking deals have been booming. Co-operative Bank made an unofficial offer to purchase Sabadell’s British subsidiary, TSB. The Spanish bank declined to accept the Spanish bid last month for TSB.

Metro Bank, established more than a decade ago as a challenger to Britain’s high-street banks, is struggling to earn profits from an expanding deposit base.

However, the losses were lessened in July after Britain’s recovery from the COVID-19 epidemic. This pandemic left small banks more at risk than their bigger and more varied counterparts due to record-low interest rates.

Metro Bank announced that a “further announcement” would be made when necessary.

Carlyle’s spokesperson declined to comment.

($1 = 0.7368 pounds)

Disclaimer Fusion MediaWe remind you that this site does not contain accurate or real-time data. CFDs are stocks, futures, indexes or Forex. The prices of Forex and CFDs are not supplied by exchanges. They are instead provided by market makers. Because prices might not reflect the market, they may be incorrect. This means that prices cannot be considered indicative and are inappropriate for trading. Fusion Media does not accept any liability for trade losses you may incur due to the use of these data.

Fusion MediaFusion Media or any other person involved in the website will not be held responsible for any loss or damage resulting from reliance on this information, including charts, buy/sell signals, and data. Trading the financial markets is one of most risky investment options. Please make sure you are fully aware about the costs and risks involved.