NAB drops Abbey National takeover plans

Abbey National is no longer being pursued by Australian suitor National Australia Bank

Abbey National is no longer being pursued by Australian suitor National Australia Bank. NAB, which owns Clydesdale and Yorkshire Banks in the UK, confirms it did made a takeover approach to Abbey.

However, in a statement to the stock market, it added: "The discussions regarding the National's proposals did not result in any agreement and have now ceased."

The statement comes a day after Abbey rejected a bid approach from Bank of Ireland.

The Bank of Ireland unveiled plans to create a combined bank, which would be listed on the London Stock Exchange, but with its headquarters in Dublin.

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On Tuesday, Abbey said it had "carefully considered" the approach but that it was "not in the best interests of shareholders".

Bank of Ireland said it was "surprised" and disappointed with the response.

It has reportedly vowed to pursue its takeover with this morning's Financial Timessaying the bank is expected to unveil a detailed proposal by the end of this week or early next week.

Any offer is expected to come in the form of a mix of cash and shares, although the cash component is expected to be small.

The FT adds Bank of Ireland is still keen to have the takeover approved by Abbey's board, rather than launch a hostile bid.

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