Insurance group Prudential is offering no comment on newspaper reports that it has been approached by US credit card company MBNA for its 79% holding in standalone Internet bank Egg.
Despite a drop in the FTSE 250 yesterday that was precipitated by weaknesses in bank stocks, Egg shares closed 10.8 percent higher at 113 pence amid market gossip that it was the subject of a potential bid approach. This morning's Daily Mail added to the speculation by naming MBNA as a possible predator.
A Prudential spokesperson declined to comment on the rumours.
Egg's stock has risen of late thanks mainly to growth in its credit card business.
Acquisitive MBNA, which last year bought the credit card business of Alliance & Leicester, has denied that it is planning a bid.