View more on these topics

B&B looks at Kensington bid as it eyes sub-prime

Bradford & Bingley has been touted as a potential bidder for Kensington Group, which confirmed it was in advanced takeover talks last week.

John Charcol senior technical director Ray Boulger says B&B has been buying books of business and this would accelerate a move into sub-prime.

He says: “B&B has been buying a lot of books of business from both Kensington and GMAC-RFC for a while. I would see the logic in B&B buying Kensington and it would mean that they then did not need to buy any more books. B&B made a brief entrance into the sub-prime market and this would help gain a bigger foothold.”

Investment bank Morgan Stanley has also been widely mooted as a potential bidder for the group, along with both Merrill Lynch and Lehman Brothers.

Kensington issued a trading statement on May 22 warning that the offer is likely to be below its present value. Its closing share price on that date was 560.5p. At the time of going to press, Kensington’s shares are at 494.5p.

In April, Kensington revealed that its mortgage book had fallen and its margins had been cut. The group, which will not comment on the speculation, is set to issue its interim report and strategic review this week.

Recommended

Alexander Hall to expand

Alexander Hall is to expand its branch network and broker headcount following the takeover of parent group Foxtons by BC Partners for 390m.Chief operating officer Andy Pratt says BC Partners is backing the plans, which will see Alexander Hall open more offices in Guildford and Surrey, where it only has one office, and expand further […]

Policyholder ejected from Standard Life AGM

A policyholder had to be forcibly ejected from Standard Life’s AGM after causing a disturbance by handing out leaflets to shareholders and shouting before the meeting was due to commence.Barry Trott was protesting about Standard Life having not paid out a £200,000 claim on his critical illness policy and handed out copies of correspondence between […]

Scot Wids paid out £25m of CI claims last year

Scottish Widows paid out more than £25 million on 774 critical illness claims in the year up to October 2006.The provider has released its critical illness claims history, showing a total payout of over £120 million for 3,703 critical illness claims between January 2000 and October 2006.Cancer accounted for more than 60 per cent of […]

Is three a crowd?

The pension versus Isa debate has raged on and off for years. Les Cameron, head of technical at Prudential, asks if three’s a crowd.   I think the debate was arguably settled by pensions freedom when the biggest downside of pensions – limited access and poor death benefits – was fundamentally changed. Total access, albeit with […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment