Shares in Alliance & Leicester jumped 50 per cent on Monday on news of an agreed 317p a share, all-share takeover offer from Santander of Spain.

A&L said earlier it was in advanced discussions regarding a possible offer priced at 299p a share combined with the right to receive an interim dividend of 18p a share, bringing the total potential offer to 317p a share. This puts a price tag of £1.33bn on the bank.