Shares digital

Alliance & Leicester (AL.) 758.5p

Spanish bank Santander has not ruled out resuming negotiations with the UK mortgage lender Alliance & Leicester, according to newspaper reports. (Read the full story: www.sharesmagazine.com/node/2718)

Shares says: Following the bid speculation shares have jumped about 20%. Given this, it would appear that a good portion of any bid premium is already in the share price, so stock is a HOLD

The Times says: Crédit Agricole, the French bank that considered a bid of about £12 a share for A&L last year, is not thought to be interested. Sources said that Bradford & Bingley was highly unlikely to come in with an offer.

Telegraph says: Santander has said it wants to increase Abbey’s market share among UK mortgage banks, which is currently about 9.4%. An acquisition of A&L would help the Spanish group expand its branch network.

The City says: Substantial IT investment that Santander had to carry out at Abbey National is largely complete, which means full attention can be paid to the cost-synergy-led deal if it were to acquire A&L in 2008.