US card group set to swoop for Egg

13 April 2012

AMERICAN credit card group MBNA is set to buy Britain's internet bank Egg for around £1.4bn and a deal could be announced within the next two weeks, according to a report in the Sunday Telegraph.

Insurer Prudential,, which has a 79% stake in Egg, put the online bank up for auction in January.

MBNA is believed to be prepared to pay a small premium to the 160p flotation price at which Egg joined the stock market in June 2000.

Prudential chief executive Jonathan Bloomer said last month the sale process for Egg was continuing, but added that the insurer would not sell Egg if it felt the price was wrong.

An Egg spokeswoman declined to comment, while a spokeswoman for Prudential said the insurer did not comment on market speculation. Officials at MBNA could not be reached for comment.

Egg shares closed up 0.2 percent at 155 pence on Friday.

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