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(Alliance News) - Metro Bank PLC shares tumbled on Thursday as private equity firm Carlyle Group backed out of a potential takeover of the retail bank.
The duo have agreed to end talks over a possible takeover offer. Though both parties announced the decision, neither gave a reason.
Metro Bank shares were 18% lower at 108.60 pence each in London on Thursday morning. They are down 22% so far in 2021.
"The board continues to strongly believe in the standalone strategy and future prospects of Metro Bank," the lender said.
Metro Bank earlier in November said it received a takeover approach from Carlyle. While the approach did not constitute a formal offer, it said it had engaged with Carlyle.
The high-street lender has faced a rocky period in recent years. UK regulators found an accounting error in its loan book at the start of 2019. In January of that year, Metro Bank announced it had underestimated the risk on its commercial loans and needed to raise capital to compensate for the shortfall and, as a result, was forced to issue an update highlighting the increased risk.
Metro Bank was demoted from the FTSE 250 index in September 2019. It has not returned since. The company had listed in 2016.
By Eric Cunha; ericcunha@alliancenews.com
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