LONDON, Oct 8 (Reuters) – Britain’s Prudential Regulatory Authority (PRA) is still working with beleaguered Metro Bank (MTRO.L) to present a plan by Monday morning that would see the bank bolster its balance sheet or find a buyer, Reuters reported. . Someone with knowledge of the situation.
In recent days, the PRA has invited major UK lenders including HSBC (HSBA.L) and Lloyds (LLOY.L) to consider making a lender bid, the person said.
Shawbrook is considering a possible new bid for London-listed Metro Bank after several failed attempts earlier in the year, people familiar with the matter told Reuters.
The Financial Times reported earlier on Sunday that JPMorgan had considered a bid to buy Metro before choosing not to proceed, while Sky News reported that Santander had hired consulting firm Ruby Warshaw to work on a potential bid.
The PRA, HSBC, Shawbrook and JPMorgan declined to comment. Metrobank, Lloyds and Santander did not immediately respond to a request for comment.
Metro Bank saw its shares fall after news emerged it had hired advisers to shore up its balance sheet after failing to secure a key capital relief from banking regulators.
The bank is exploring options to raise up to 600 million pounds ($734.28 million) of capital through equity and debt injections and asset sales.
Metro Bank said on Thursday that its options include a mix of equity and debt issuance, as well as refinancing and asset sales. It said it has met minimum capital requirements and has not decided on fundraising plans.
While Metro Bank customer deposits, like those of other British banks, are backed by a government guarantee of up to £85,000, the regulator is keen that concerns do not spread.
(Reporting by Elisa Martinozzi, Pablo Maio Cerquerio, Ian Withers and Amy Jo Crawley), Editing by Bernadette Baum and Ross Russell
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