Banco Santander's (BS) bid for Abbey has received a decidedly lukewarm reception report most papers today after the two companies yesterday revealed details of the payment existing Abbey shareholders will receive.
The Times is just one of many to note the value of the bid at 548p per share falls well below City expectations of between 560p to 580p. What may be a bigger issue for shareholders, however, is whether BS’ plans for driving costs out of Abbey and putting the firm on the road to a firmer recovery are sustainable or not. The Daily Telegraph says acceptance of BS’ bid underlined “Abbey’s failure to grow its business and compete with rivals.” This point was highlighted by comments from BS chief executive Alfredo Saenz, who yesterday noted: “It has failed to develop its business because...
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