Lloyds offered book value, stock could jump three-fold!5 Nov 2019 13:13
At the time of writing, there’s no certainty any offer will be made for Metro, but if one doesn’t merge, how much would the company be worth? Well, currently, shares in Metro trade at a price to book ratio of 0.2. So, if Lloyds offered book value, the stock could jump three-fold. However, I think it’s unlikely Lloyds will want to pay full price. It will have to pump new capital into the business, and there’ll be extra costs associated with the merger as well. On this basis, I think the bank will want a substantial discount for the assets of its smaller peer. There’s also been some speculation Metro’s founder Vernon Hill could come back to instigate a management buyout of the business, and this could upset Lloyds’ plans.
https://uk.finance.yahoo.com/news/could-now-time-pile-metro-110550918.html