British challenger bank TSB has received a takeover approach from Spain’s Banco Sabadell.
The offer from Spain’s fifth biggest bank values the firm at around 2.5 million euros. Shares in TSB rose sharply, and were up 26 percent at 333.255 pence at 1040GMT.
Sabadell has made a proposal of 340 pence in cash for each TSB share, subject to reaching agreement on the terms and conditions of an offer, and talks are continuing. TSB, Britain’s seventh-biggest lender, said it would recommend the offer to shareholders.
The sale would enable Lloyds Banking Group to dispose of its remaining 50 percent stake of the business, which it was ordered to sell by European regulators as a condition of its 30-billion euro government rescue during the financial crisis of 2007-9.