OCMIAN 2480
CONFIDENTIAL
PP HOKON
FM FCOLN TO HOKON
241505Z APR
GRS 482
CONFIDENTIAL
FM FCO
TO PRIORITY HONG KONG
TELNO 748
OF 2415052 APRIL 86
37
CONFIDENTIAL
M V
36
PERSONAL FOR GOVERNOR FORM HUM, HKD
YOUR TELNO 1052: STANDARD CHARTERED BANK
1.
I AM AFRAID THAT IT HAS TAKEN THE BANK OF ENGLAND SOME
TIME TO MUSTER THEIR PRELIMINARY REACTIONS TO THE BID BY LLOYDS
BANK FOR THE STANDARD CHARTERED BANK. THESE ARE AS FOLLOWS.
2.
THE BANK OF ENGLAND POINT OUT THAT IT IS OF COURSE NOT
YET CLEAR WHETHER THE LLOYDS ACQUISITION OF STANDARD CHARTERED WILL
TAKE PLACE. HOWEVER ACCORDING TO THE PRESS THE VERY LATEST
INDICATIONS ARE THAT THE LIKELIHOOD OF AN ALTERNATIVE BID MAY
HAVE RECEDED. THE SHARE PRICE OF STANDARD CHARTERED HAS FALLEN
OVER THE WEEK TO A POINT NOT THAT FAR ABOVE THE PRICE IN LLOYDS
INITIAL BID. THE CHANCES OF A SUCCESSFUL TAKEOVER BY LLOYDS MAY
ACCORDINGLY BE SOMEWHAT IMPROVED.
3.
THE BANK OF ENGLAND FEEL IT IS DIFFICULT TO KNOW AT THIS
POINT EXACTLY WHAT IS IN LLOYDS' MIND AS REGARDS THE OVERSEAS
OPERATIONS OF STANDARD CHARTERED. THEY POINT OUT THAT THE LLOYDS
PRESS RELEASE ABOUT THE BID INDICATED THAT THEY WOULD BE
PRAGMATIC, RETAINING THE STANDARD CHARTERED NAME AND PERSONNEL
WHERE IT MADE COMMERCIAL SENSE. (THE CONVERSATION BETWEEN SIR L
ALEXANDER AND THE FINANCIAL SECRETARIAL PUTS THIS ASSURANCANCE IN
HKK 102/1
- 6 MAY 1986
MA
Action Taken
AB 5
-1-
CONFIDENTIAL
32480
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