Abbey may have to reconsider BoI offer

THE board of the British bank Abbey National plc may be forced to re-think its rejection of Bank of Ireland's takeover offer if institutional shareholders decide they like the Irish bank's plans.

In the coming days the Bank of Ireland (BoI) is to publish a detailed statement on its proposal to take over Abbey National. The statement will be the Irish bank's major volley in the opening of hostilities with the Abbey board. It is believed the leak about BoI's proposals came from the Abbey National side of the tussle.

Major institutional shareholders in Abbey have already sought assurances that the board has given careful consideration to BoI's offer.