Aldermore preparing Co-operative Bank takeover bid

Aldermore is reportedly in talks for a potential takeover of The Co-operative Bank, according to reports by Sky News.

Aldermore has already hired advisers to prepare for the takeover, it is understood.

Reports first emerged in April that that the Bank was exploring a potential sale, alongside considering mergers, acquisitions, and an initial public offering (IPO).

Shawbrook, Nationwide, OneSavings Bank and Paragon Bank have all also been named as prospective bidders for the Co-operative Bank, which has 2.7 million retail customers and is valued at £800m.

Shawbrook reportedly approached the owners of Co-op Bank in recent weeks with proposals for a stock-based combination of the two firms and hired investment bankers at Barclays to advise it on its interest.

Shawbrook's approach reportedly comprised a £3.5bn offer for roughly 29% of the combined banking group.

Last month, Co-op Bank agreed to acquire Sainsbury's Bank's mortgage portfolio, comprising approximately 3,500 customers with balances of around £479 million.

Financial Reporter contacted Aldermore, who declined to comment.

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