Credit Agricole, the French bank linked to a possible takeover bid for Alliance & Leicester (A&L) has said it will not be making an offer for the UK lender.
Last month Credit Agricole announced that it was assessing A&L, among others, as a potential acquisition opportunity but that its evaluation was at a preliminary stage.
Since then, the bank says it has undertaken further analysis of A&L and the returns it could generate from an offer for lender.
In an update to the stock exchange this morning the French bank says following a more thorough analysis it has decided not to proceed with an offer for A&L.
But Credit Agricole has reserved the right, under Rule 2.8 of The City Code on Takeovers and Mergers, to make or participate in an offer for A&L shares in the next six months with the agreement or recommendation of the A&L board.
It says this also applies if any announcement is made by or on behalf of A&L or a third party relating to the making of an offer or possible offer for the lender.
A&L has issued a statenent this morning welcoming clarification of Credit Agricole's position.
Richard Pym, group chief executive at A&L,says: "The announcements by Credit Agricole has not diverted Alliance & Leicester from our focus on delivering our strategy and we welcome the clarification today's announcement provides. "We continue to progress well against our strategic objectives as we become the UK's leading direct bank".IFAonline
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