HBOS chief quits Aussie talks

BANKING group HBOS has left the door ajar to further talks over buying two Irish operations from National Australia Bank.

Chief executive James Crosby walked away from discussions on a possible purchase of Dublin-based National Irish Bank and Belfast's Northern Bank.

But he is ready to resume negotiations if the Australians cut their £ 1bn-plus price tag.

Lloyds TSB has also been eyeing the pair. The large Irish banks, Bank of Ireland and Allied Irish Bank, are barred by competition regulators from bidding.

Banking sources said HBOS has not lost interest but had pulled back for tactical reasons.

NAB, which also owns the Yorkshire and Clydesdale banks, does not expect to announce a deal before the New Year.

Its boss, former Woolwich chief John Stewart, hired investment bank Lazard in the summer to advise on options for its UK and Irish arms.