JPMorgan Chase in talks to buy Egg

JPMorgan Chase in talks to buy Egg

US banking group JPMorgan Chase is considering whether to proceed with a £1.4bn bid for UK Internet bank Egg, according to a report by the Financial Times.

The paper says JPMorgan Chase has been negotiating for weeks with Prudential, which is auctioning its 79% stake in Egg.

According to the report, JPMorgan is one of the last potential bidders in the seven-month auction. The banking group is thought to be primarily interested in the credit cards business and a successful bid would be the first step in internationalising its cards franchise.

JPMorgan Chase, Prudential and Egg all declined to comment on the rumour, which follows recent speculation that the online bank is just "days away" from being taken over by US credit card company Capital One.

Prudential put Egg - which is the UK's largest online bank - up for auction in January. Since then US credit card firm MBNA, Royal Bank of Scotland, Citibank and HSBC have all been touted as potential buyers.

Last week Egg announced it would closing its loss-making French busines in a bid to make it more attractive to potential bidders.

Shares in Egg rose by three per cent to close at 155.75 pence yesterday.

Comments: (0)