Abbey shares have soared this afternoon after the UK bank admitted it was in takeover talks and Spain's biggest bank Banco Santander Central Hispano subsequently confirmed it is the other party.
Abbey shares are currently up 79p to 572p, although they gained almost £1 on first news of the talks. It is the second time this year that Banco Santander has made a move for the troubled UK firm. Both banks refuse to say whether the talks will lead to a firm bid, but the market's reaction clearly indicates the premium it believes will have to be paid for the deal to go through. Abbey is mid-way through a multi-year recovery plan after its disastrous foray into wholesale banking services cost former chief executive Ian Harley his job two years ago. Abbey shareholders may want to...
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