British lender TSB confirmed it has received a GBP 1.7bn takeover approach from Spain’s Banco Sabadell. TSB, whose IPO on the London Stock Exchange last June valued the bank at GPB 1.3bn, said it was willing to recommend Sabadell’s offer to shareholders, adding that the Spanish bank could support TSB’s retail growth strategy. The British bank’s shares shot up by 25 percent following the announcement.
Lloyds Banking Group was forced to sell TSB by European regulators after receiving a government bailout during the UK financial crisis. Any takeover offer must first be approved by Lloyds, which must sell its remaining 50-percent stake by the end of the year. TSB is the UK’s seventh biggest lender.
