20000208

BOS chief hopes to meet NatWest CEO on bid -Times

LONDON: Bank of Scotland Chief Executive Peter Burt hopes to meet his National Westminster Bank counterpart David Rowland to seek his backing for BOS's takeover bid for NatWest, The Times reported on Monday.

NatWest is battling hostile bids from Bank of Scotland and Royal Bank of Scotland (RBS) before the final deadline on February 14.

"We will let it be known to NatWest that we are willing to talk. We want Sir David to know our doors remain open and we wish to see a discussion move forward in a positive way," The Times quoted Burt as saying.

The paper said Burt was expected to stress that Bank of Scotland plans to open 125 new NatWest branches if its bid is successful.

A Bank of Scotland spokesman told The Times many branches would be reduced in size but that none would be closed.

NatWest has previously rejected both Scottish banks' bids as risky and inadequate. It denied on Sunday it had made approaches to either bank.

The Times also said it understood RBS Chief Executive George Mathewson intended to contact Rowland later this week. It quoted a spokesman for RBS saying he would not comment on Matthewson's meetings.

The Financial Times said Bank of Scotland would say on Monday it had taken more than 10 percent of the market for home loans, worth 630 million pounds, in Ireland since August. The FT said this was an attempt to boost its European credentials in the final week of the NatWest battle.

Britain's biggest retail bank, Lloyds TSB Group Plc, was reported on Sunday to be planning a hostile bid for Royal Bank but sources close to the banks told Reuters on Sunday it was extremely unlikely Lloyds TSB would launch such a bid.

"This is absolutely rubbish. It's not true," a banking source close to Lloyds TSB said, adding the bank did not want to be used to disrupt the NatWest bid process.

Analysts and bankers said Lloyds TSB would have to sell a large part of its TSB operations in Scotland to clear a bid for Royal Bank with competition authorities and that Lloyds had a history of agreed rather than hostile deals.

Matthewson told Reuters through a spokesman that a combined RBS-NatWest operation would be seen as capable of mounting a major challenge to Lloyds TSB.

"Everyone needs a good competitor and Lloyds TSB would view RBS NatWest in that light," Matthewson said.-Reuters