People walk past a Metro Bank in London, Britain, May 22, 2019. Portal/Hannah McKay/File Photo Acquire License Rights
LONDON, Oct 8 (Portal) – Britain’s Prudential Regulation Authority (PRA) is still working with embattled Metro Bank (MTRO.L) to unveil a plan by Monday morning that would allow the lender to strengthen its balance sheet strengthen or find a buyer, says a person with knowledge of the situation.
The PRA has in recent days asked major British lenders, including HSBC (HSBA.L) and Lloyds (LLOY.L), to consider making an offer for the lender, the person said.
Shawbrook is considering a possible new bid for London-listed Metro Bank after several failed attempts earlier this year, people familiar with the matter also told Portal.
The Financial Times reported earlier on Sunday that JPMorgan (JPM.N) had considered a bid for Metro before deciding not to proceed, while Sky News reported Santander (SAN.MC) had hired consultancy Robey Warshaw to work on it a possible offer.
PRA, HSBC, Shawbrook and JPMorgan declined to comment. Metro Bank, Lloyds and Santander did not immediately respond to a request for comment.
Metro Bank shares plunged after news that the company had hired advisers to shore up its balance sheet after failing to secure key capital relief from banking regulators.
The bank is exploring options to raise up to 600 million pounds ($734.28 million) of capital through equity and debt injections and asset sales.
Metro Bank said Thursday that its options include a combination of equity and debt issuances, as well as refinancing and asset sales. It said it was meeting its minimum capital requirements and had not yet made a decision on fundraising plans.
While Metro Bank’s customer deposits, like those of other British banks, are backed by a government guarantee of up to £85,000, the regulator wants to prevent concerns from spreading.
Reporting by Elisa Martinuzzi, Pablo Mayo Cerquerio, Iain Withers and Amy-Jo Crowley, editing by Bernadette Baum and Ros Russell
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