Landsbanki in £1.4 billion takeover bid

Last week the Icelandic bank, Landsbanki, teamed up with Cenkos Securities to place a bid for ownership of a 129 year old bank controlled by the Close Brothers. The British investment bank is currently considering the £1.4 billion takeover bid.

After their cash bid was rejected, the chairman of Cenkos, Andy Stewart, made a direct appeal to the Close Brothers.

Stewart was quoted in the Sunday Times as saying: “As soon as the Takeover Panel allows me to, I will go to Close Brothers investors, especially those who have already contacted me, to talk about our plans for this deal. We’ve got £9.50 per share in cash and we believe they are interested.”

However, the Close Brothers reportedly called the cash offer from Cenkos and Landsbanki as “wholly inadequate” and said that in the future they will “not pursue discussions with the consortium”.

Cenkos and Landsbanki intend to divide the bank, with Cenkos assuming responsibility of the asset management arm of the bank as well as its corporate advisory and investment banking operations.

Landsbanki is interested in purchasing the corporate banking division.