Alliance & Leicester's share price has jumped 40% this morning after the lender announced it is in "advanced" discussions on a possible £1.3bn takeover.
Abbey owner Santander is believed to have made the 317p per share offer, which includes an 18p per share interim dividend.
The proposed deal values A&L at approximately £1.3bn.
A&L's share price has climbed 89.5p (40.8%) to 308.75p on the announcement.
“Alliance & Leicester confirms that it is at an advanced stage of discussions regarding a possible offer,” the statement reads.
“This announcement has not been made with the consent of the potential offeror and there can be no certainty that an offer will be forthcoming or as to its terms.”IFAonline
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