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The board of Metro Bank rejected a secret takeover approach last month from a rival British lender, just days before its share price crashed when it emerged that it was seeking hundreds of millions of pounds to shore up its finances.
Sky News can exclusively reveal that Shawbrook has tabled several bid proposals to Metro Bank, including one that was lodged as recently as the second half of September.
News of the approaches comes hours before a group of Metro Bank bondholders are expected to meet with the company’s bosses for talks about a financing package totalling more than £500m.
The objective of the talks is to agree a deal before the London stock market opens on Monday morning, according to insiders.
Analysts believe that Metro Bank will need to explore a sale of the company in case alternative proposals, such as a bondholder-led refinancing or a standalone capital-raising, were to fail.
This weekend, City sources said that Shawbrook’s recent overtures had been rebuffed by the high street retail bank.
It was unclear whether any live discussions were ongoing between the two companies, while the valuation of Shawbrook’s offers could not be established.
The proposals were not disclosed to the stock market by Metro Bank’s board.
The emergence of a credible buyer may raise questions about its directors’ decision not to engage in constructive talks given the company’s need to strengthen its balance sheet.
Shawbrook is also among a small number of banks vying to buy the Co-operative Bank, which is up for sale.
A Metro Bank spokeswoman declined to comment on the approaches from Shawbrook, which also declined to comment.
The so-called challenger bank endured a torrid week, with its share price crashing nearly 30% on Thursday in the wake of a Sky News report that it is working with investment bankers on asset disposals, the sale of new shares and the refinancing of a £350m bond due next year.
On Friday, the stock rallied 20% to close at 45.25p,…
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