The owner of Clydesdale and Yorkshire banks has improved its £1.6bn offer for Virgin Money in an attempt to create Britain’s sixth-largest bank, with 6 million customers.
Clydesdale and Yorkshire Bank Group (CYBG) is offering Virgin shareholders a larger stake in the combined group – 38% compared with 36.5% under the initial offer – prompting Virgin to enter into negotiations with its rival. CYBG is offering to exchange 1.2125 new shares for each Virgin Money share, up from 1.1297 shares.
The revised offer values Virgin Money at 359p a share. CYBG’s share price had fallen in recent weeks but rose 1.4% to 296.4p on Monday morning.
