British Internet bank Egg managed to narrower its first-half loss after reining in costs at its French business, but it still has not been able to attract a new owner.
Egg, whose majority shareholder Prudential has been in talks for over six months to sell its 79 per cent stake, had a pre-tax loss of £4 million sterling ($7.37 million) in the first half, down from £23 million sterling in the same period last year.
But the absence of a sale or even a hint that one was in the pipeline dragged Egg's shares down and by 8.45 they were 2.87 per cent lower at 152-1/2 pence in a mid-cap market. FTMC 0.56 per cent lower. Prudential shares were off 2.07 per cent.
Egg has dropped over 20 per cent since hitting a peak of 197-3/4 pence in January when Britain's second-largest insurer said it had put the bank on the block but is still above the 125 pence it was at prior to that announcement.
Egg's boss was tight-lipped on Prudential's talks, focusing instead on prospects for Egg's core UK business, where operating profit fell to £34.5 million from £36.7 million amid tight competition, rising interest rates and bid uncertainty.
Losses at Egg's French business, soon to be closed, narrowed to £32.2 million from £48.7 million on the back of tight cost controls.
Earlier this month, Egg said it would withdraw from the loss-making French operation after Prudential said no potential purchaser was willing to invest in it.