Barclays PLC (BCS), is in talks to buy the banking division of
Standard Life (SL.LN), U.K. newspaper The Times reported on its Web
site Tuesday, without citing specific sources.
The move is part of its strategy to snap up businesses while its
rivals try to rebuild their balance sheets after the financial
crisis, The Times said. Standard Life is talking to several
parties, but Barclays is understood to be the most likely bidder,
The Times said. Standard Life bank has savings balances of GBP5
billion, mainly through the growth of self-invested personal
pensions, and about GBP9.7 billion in mortgages, which have fallen
in the past 18 months, The Times said.
The bank employs 300 staff in Edinburgh and in 2008 made a
profit of GBP9.5 million, the newspaper said.
The deal may be priced at between GBP200 million to GBP300
million, according to financial sector speculation yesterday,
although analysts said that such a valuation was generous, The
Times said. Barclays and Standard Life did not comment, The Times
said.
Newspaper Web site: http://timesonline.co.uk
-Dow Jones Newswires; dennis.baker@dowjones.com