Lloyds TSB on the lookout for possible takeovers
Lloyds TSB has announced that is on the lookout for possible takeovers. The UK’s fifth largest bank said valuations in the banking sector had fallen, making targets more attractive.
Sir Victor Blank, Lloyds TSB’s Chairman said we look around all the time to see if there are opportunities and there are likely to be more, going forward if you look at valuations.
It is believed that the bank is considering a potential takeover for Alliance & Leicester (A&L). Sources close to Lloyds TSB say the bank is considering potential takeover approaches to smaller rivals such as A&L and Bradford & Bingley.
Chief executive Eric Daniels said he was confident about 2008 despite the uncertain economic outlook. Mr Daniels added that he is relaxed about competition from Northern Rock now it is Government-owned.
Last week, Lloyds TSB shrugged off the credit market turmoil by announcing a 6% increase in underlying 2007 profit and raised its dividend.