First Abu Dhabi Bank pressing ahead with offer for StanChart - report

Standard Chartered surged on Thursday following a report that First Abu Dhabi Bank is pressing ahead with a potential offer for the bank.

According to Bloomberg, under the code name Silver-Foxtrot, officials at the Abu Dhabi bank are working under the radar on a possible bid once a cooling off period required by UK takeover rules elapses.

Sources said FAB recently completed due diligence on the London-based lender and that any deal would be dependent on market conditions and the performance of Standard Chartered’s share price.

The bank, which is worth about twice as much as Standard Chartered, was said to be exploring an all-cash bid of in the range of $30bn to $35bn. Any acquisition would be funded by its backers, which include Abu Dhabi sovereign fund Mubadala Investment Co. and the emirate’s ruling Al Nahyan family, Bloomberg said.

At 0920 GMT, StanChart shares were up 9.5% at 754.20p.