Shares in Egg rise on MBNA bid rumours
14 January 2004 | 6420 views | 0
Shares in Egg have soared on speculation that insurance group Prudential has received a bid for its 79% stake in the Internet bank from US credit card firm MBNA.
Prudential has confirmed it is in discussions regarding a possible transaction with respect to its shareholding in Egg. In a statement the company says: "Such discussions are at a preliminary stage and there is no certainty that any agreement will be reached."
Egg has also issued a statement saying it is 'assisting' Prudential regarding a possible transaction.
This morning, stock was up 13.2% at 141 and 1/2 pence, valuing the bank at £1.1bn. According to Reuters, some 4.2 million shares changed hands, eight times the daily average volume.
There was market speculation that MBNA had made an approach for Egg last February, although Prudential refused to comment at the time.
Egg is currently trying to find a partner for its troubled French business which recorded losses of £69.5m in the first nine months of the last year. The Internet bank has struggled in France since launching its La Carte Egg credit card a year ago.