Lloyds 'eyeing Deutsche, StanChart'

THE CITY looks to be betting on a fresh strike by Lloyds TSB with reports at the weekend linking the bank with German giant Deutsche Bank and Far Eastern specialist Standard Chartered.

The High Street giant has already held talks with Deutsche about an £80bn tie-up, the Independent on Sunday reported. But these fell apart over the summer, partly due to demands by Deutsche chief Rolf Breuer that the combined group be headquartered in Frankfurt. Breuer is under pressure to take early retirement, which could clear the way for talks to resume.

The Sunday Times said StanChart investors were pressing the bank to put itself up for auction after it emerged that Lloyds and Barclays had made approaches. Lloyds chairman Maarten van den Bergh several weeks ago told his StanChart counterpart Sir Patrick Gillam that Lloyds would be interested, but he was rebuffed. Barclays chief executive Matt Barrett has outlined a takeover plan to Standard's chief Rana Talwar.

'We are the atttactive belle at the ball,' the Sunday Time quoted one anonymous 'insider' saying. It said StanChart could be tempted by an offer of 1200p a share, valuing it at about £13bn.

Lloyds has been hunting for a partner since the summer when the Competition Commission blocked its £19bn hostile bidder for Abbey National. The bank has indicated it was seeking a European deal but is also thought to have held talks with US groups Wells Fargo and Bank One.

None of the banks were immediately available for comment.

Taking stock