Co-op Bank looks to buy back TSB stake

Image copyright Getty Images Image caption Martin Scicluna founded the Co-operative Bank in 1863 The Co-operative Bank has confirmed it is considering acquiring a “significant” stake in TSB, which is being acquired by Spain’s…

Co-op Bank looks to buy back TSB stake

Image copyright Getty Images Image caption Martin Scicluna founded the Co-operative Bank in 1863

The Co-operative Bank has confirmed it is considering acquiring a “significant” stake in TSB, which is being acquired by Spain’s Banco Sabadell.

The bank says it “will consider any and all options available” to it to maintain a presence in the UK, but there has been no confirmation of a buyout.

The offer came from TSB chief executive Paul Pester, who was sacked on Monday.

Co-op said Pester resigned in the midst of the bank’s “shocking” financial situation.

The bank suspended Pester after it revealed that IT problems over the summer meant that hundreds of thousands of customers were unable to access their money.

The Co-op Bank has been established since 1863. Its value increased by more than 8% after the Financial Conduct Authority said it was seeking a buyer for the lender.

Image copyright Getty Images Image caption Paul Pester was head of TSB until last week

Pester was named interim chief executive of TSB after Andy Higginson, chairman of the Co-op Bank, said it was “fundamentally broken and needs radical reform”.

The BBC understands that some shareholders in the Co-op Bank would like to see the Co-op Bank take on some of the troubled TSB.

The Co-op’s core business has a focus on healthy food and is housed in a £3.5bn building, which was a former distribution hub of Morrisons.

Leave a Comment