Visa launches bid for Visa Europe, UK Banks stand to gain

Visa Europe has been approached by its former parent company, US-listed Visa Inc. with a bid offer, reports have claimed.

Visa Inc. recently stated that were a deal to be struck, it "would likely be in excess of $10bn", while the Financial Times said people familiar with the matter had estimated the deal could be worth as much as $20bn.

If the deal goes ahead, banks including Lloyds, Barclays, Royal Bank of Scotland and Nationwide would all take a share of the profit.

The approach was first reported by Sky News, which spoke to a source who estimated UK banks have a stake in the company totalling between 25% and 30%, with the largest share reportedly held by Barclays at just under 10%.

Morgan Stanley investment bankers are believed to have been appointed by Visa Europe to advise on the situation, the publication said, while Visa Inc. is said to be taking advice from JP Morgan.