Shares in UK's Metro Bank soar on Pollen Street buyout report
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The news: Shares in high street lender Metro Bank Holdings jumped on Monday, on reports that PR firm Pollen Street Capital had approached the bank with a potential takeover offer in recent weeks.
The numbers: Shares in Metro Bank climbed over 14% in morning trading on Monday, its largest intraday gain since July last year.
Metro Bank closed at 112.2 pence per share on Friday, giving it a market capitalisation of just over £750 million ($1.56 billion).
The context: Pollen Street is a major shareholder in mid-sized lender Shawbrook, which has previously approached Metro about a possible merger. Shawbrook’s owners have ramped up efforts to identify a corporate combination in recent months, Sky News reported over the weekend, having held early talks with Starling Bank for a possible £5 billion tie-up and exploring a possible listing.
Metro Bank launched an overhaul afters its debt restructuring in October 2023 in efforts to revive its profitability and has since focused on reducing costs via job cuts and slashing its portfolio of assets.
Sources confirmed to the FT that the talks were at an early stage and that there is no certainty of a deal. The deal would mark yet another blow for the London Stock Exchange which is struggling to attract and retain listings.
A number of challenger banks have struggled to compete in the UK market. In March last year the UK’s Nationwide Building Society has reached an agreement to buy Virgin Money for £2.9 billion.
