(Alliance News) - Co-operative Bank on Monday confirmed an effort to tempt Banco de Sabadell SA to sell TSB Banking Group PLC.
Co-operative Bank confirmed a weekend press report that said the lender was exploring the potential purchase of TSB from Spain's Sabadell.
Edinburgh-based TSB is owned by Alicante, Spain-based Sabadell, which bought the UK lender from Lloyds Banking Group PLC in 2015.
On Sunday, Sky News reported that Co-operative Bank contacted Sabadell earlier this month over a potential deal. According to Sky, Co-op would be willing to pay in excess of GBP1 billion for TSB.
Co-operative Bank on Monday acknowledged that a letter was sent but said that no discussions about the idea are currently taking place with Sabadell.
Chief Executive Officer Nick Slape said: "Our unique brand, underpinned by co-operative values and ethics and the significant progress we have made in returning our bank to profitability is a testament to the hard work of our colleagues and the loyalty of our customers - which we continue to place at the heart of all our decisions."
The statement comes a day after Banco de Sabadell itself said it was not interested in selling TSB.
The Spanish bank said "this is not a transaction that we wish to explore at this moment, as we have previously expressed publicly", according to the Financial Times.
The newspaper was told by a source that the board had unanimously rejected the approach.
Eight years ago Co-operative Bank, at the time still owned by the Co-op Group, tried to pull off a similar move, but this time by only buying some 600 TSB branches.
By Paul McGowan; paulmcgowan@alliancenews.com
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