Cattles 'close to LSB deal'

11 October 2006

UK-based lender Cattles is on the verge of securing the acquisition of its smaller rival London Scottish Bank (LSB), according to recent press reports.

On Wednesday, the Financial Times claimed that sources had said a deal to buy LSB for around £180 million was imminent, with LSB in exclusive talks with Cattles.

Discussion are currently stuck on the issue of price, the newspaper reports, although something in the region of £1.23 and £1.30 per share is expected.

The sources suggest that an agreement could be announced as early as this week.

However, an LSB spokesperson has said that no deal has yet been decided, with talks currently continuing.

Earlier this year, several companies were known to be in the running of the takeover, although analysts suggest that Cattles is probably the best suited of the contenders, with the acquisition likely to boost earnings.

Both companies specialize in lending money to low income individuals, charging high levels of interest due to the increased risk.

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