Royal Bank may bid for Abbey

Royal Bank of Scotland Group Plc, Britain’s second-largest bank by assets, may make a bid for Abbey National Plc, which Santander Central Hispano agreed to buy last month for about £8.2 billion (€12.3 billion), the Observer newspaper reported.

Royal Bank, based in Edinburgh, probably wouldn’t make any move before mid-September, the newspaper said. Two weeks ago, Abbey National recommended an £8.2 billion or €12.3 billion offer from Santander. HBOS Plc has said it is considering a bid for Britain’s second-largest mortgage lender.

Calls made to bank spokeswoman Carolyn McAdam weren’t answered.