Abbey National takeover gets go-ahead

Shareholders in British building society Abbey National today gave the go-ahead for a takeover by Spain’s largest bank after a stormy meeting in which the group faced a barrage of criticism.

At a fraught and lively gathering, in which the board was continuously heckled, the Abbey chairman Lord Burns declared the takeover by Banco Santander Central Hispano (SCH) had been passed by shareholders.

Although 94.6% of shareholders voted positively based on the value of shares, only 64.8% approved the deal when counting one vote per shareholder.

This suggested a significant revolt by Abbey’s army of 1.7 million small shareholders, 900 of whom descended on the Wembley Conference Centre.

The majority of the crowd applauded suggestions that the acquisition should be blocked.

The takeover will now have to secure approval by Spanish shareholders before its expected completion next month.

It must also gain approval by the City regulators, although Britain's Financial Services Authority said last night that it saw no reason to block the move.