Standard Chartered Denies Merger Talks With Barclays

Britains Standard Chartered Plc yesterday denied it was in merger talks after British newspapers reported that Barclays Plc was set to launch a 10 billion pound bid for the bank.

We are not in discussions with any other parties, said Standard Chartered spokesman Tim Halford, declining further comment on the reports.

His comments came after the Sunday Business and Sunday Telegraph newspapers reported that Barclays was set to launch a bid for Standard Chartered.

The papers said Barclays chief executive Martin Taylor had met earlier this month with Malcolm Williamson, his opposite number at Standard Chartered, with the offer of a merger.

 

However, his approach was expected to be rebuffed by Standards board, which wanted to keep the banks independence, the Sunday Telegraph said.

According to Sunday Business, Britains Takeover Panel watchdog was likely to force Barclays to confirm its interest in Standard in a statement before the start of trade today.

A Barclays spokeswoman said the bank never commented on speculation.

Standard Chartereds shares surged on Friday, helped by positive sentiment ahead of full-year results due on Wednesday, traders said. The banks shares rose about 45.5 pence to 764.5 amid heavy buying.

Meanwhile, Barclays shares closed up about 11 pence at 1876 pence.

Barclays intentions have been the subject of intense speculation in recent months, with speculation about a huge merger with rival National Westminster Bank constantly in the news.

However, Sunday Business said a takeover of Standard which has most of its operations in Asia and Africa would appear to avoid the UK regulatory hurdles faced by any NatWest deal.

Last week, Martin Taylor said he expected the face of the European banking industry to be transformed over the next 10 years with cross-border consolidation as well as mergers within countries.

Asked if he had been discussing a merger with NatWest, Taylor replied: I wouldnt tell you if I had and gave the same answer when asked if Barclays has been sounding out the competition authorities.

Taylor said he did not know when consolidation moves in the banking industry would take place I just know that 10 years from now, the international banking world will look completely different from what it looks now.

He added that cross-border mergers were also unlikely to incur adverse scrutiny from competition authorities.