Shawbrook shares reverse course after rejecting fresh takeover bid

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Shares in specialist UK bank Shawbrook have stumbled this morning, helping reverse a near 20 per cent rise at the end of last week after the bank said it had rejected a second takeover bid by a pair of private equity firms.

This morning, Shawbrook said its board had rebuffed a second offer valuing the bank at £825m from Pollen Street Capital and BC Partners two years after the bank’s flotation.

Shares are down 4 per cent this morning at 305p, putting them on course for their worst single day drop since November. News of the bid from Pollen Street had sent sent shares surging 18 per cent last week.

Under the terms, Shawbrook shareholders would have received 330p a share – a 35 per cent premium on the bank’s closing share price at the end of January. The initial offer, made in January, valued the bank at 307p per share.

Rejecting the fresh offer on Tuesday, Shawbrook said:

The Board remains very confident in Shawbrook’s strategy as a publicly listed company…and in the ability of its current management team to deliver its plan, and is clear that its successful delivery and growth trajectory would generate significant shareholder value over the period to 2020.

Analysts at Liberum said they were not ruling out a third bid from Pollen, which already owns nearly 40 per cent of the lender.

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