Shares in Asian-focused bank Standard Chartered PLC (LSE:STAN) topped the FTSE 100 risers after a report on Bloomberg that First Abu Dhabi Bank (FAB) is pressing ahead with a potential offer for the lender.
According to Bloomberg, FAB, which is worth about twice as much as Standard Chartered, is exploring an all-cash bid of in the range of US$30bn to US$35bn, citing sources.
Bloomberg reported: “Under the code name Silver-Foxtrot, officials at the Abu Dhabi bank are working under the radar on a possible bid once a cooling off period required by UK takeover rules elapses, according to people familiar with the matter.
“FAB, as the bank is known, recently completed due diligence on the London-based lender, the people said, asking not to be identified because the matter is private.
“Any deal would be dependent on market conditions and the performance of Standard Chartered’s share price," they said.
In January, shares in the FTSE 100-listed bank soared, and then fell in a matter of minutes, as FAB said it had been considering a move for the bank but had decided not to proceed at that time.
Shares in Standard Chartered rose 9.9% in London on Thursday to 757.20p.
Victoria Scholar, head of investment, interactive investor said the weakness of the pound has made the UK attractive to investors.
"International businesses and investors have been looking towards the UK market over the last year as an attractive geography in the search for potential takeover targets, given the depreciation of the pound since the May 2021 peak and the corresponding increased attractiveness of sterling-priced valuations."
"The recent revival of the pound could spur investors to move quickly as valuations become richer again," she suggested.