LONDON (Brand Republic) – Barclays Bank confirmed on Wednesday (August 9) that it is in takeover talks with the Woolwich, with an offer price of around £5.5bn or 362p a share.
The price is a 34% premium on Tuesday’s closing price. During early morning trading on Wednesday the former building society shares rose 18% to 317p while Barclays’ fell 4.2% to 1,593p.
The Woolwich became an attractive takeover target when it launched its Open Plan online banking and mortgage service, which would compliment Barclays’ own online banking operation.
Both groups said that if an agreement were reached both banking brands would be retained
John Stewart, Woolwich chief executive, is thought likely to join Barclays and become successor to Matt Barrett, Barclays chief executive.