HBOS may counter bid for Abbey

BANKING group HBOS is mulling a possible £9 billion counter-bid for takeover target Abbey National, it was reported yesterday.

HBOS has a team looking at the benefits and disadvantages of bidding for Abbey, which last week agreed an £8.5 billion merger with Spain’s biggest bank, Banco Santander Central Hispano (BSCH), a national Sunday newspaper reported.

Abbey’s shareholders had sent “a clear message” that they wanted to see an offer from HBOS, the newspaper cited an executive with a close knowledge of HBOS as saying.