NAB silent on UK bank float talk

NAB submitted a bid last week to buy 318 branches put up for sale by The Royal Bank of Scotland. RBS is selling the branches to satisfy European competition rules for accepting state aid. According to one report, NAB asked advisers Morgan Stanley and Goldman Sachs to consider a 2bn flotation to help meet capital requirements if it wins the assets. Another report said the flotation would take place if NAB fails to win the assets in a "double-or-quits" strategy.

Cameron Clyne, group chief executive, told the Yorkshire Post: "I cannot go beyond the comments I made at our annual general meeting which is that we have a great business in the UK and we will look at current market activity to assess what opportunities may present themselves."

The Australian bank is one of five contenders to place initial bids. The others are Spanish banks Santander and BBVA, Sir Richard Branson's Virgin Money and US private equity firm Blackstone, which has tabled a bid with the Wellcome Trust charity.

The bids are thought to be valued between 1.5bn to 2bn. Many of the branches are in the North West and South of England, which would complement NAB's existing footprint. The acquisition would nearly double NAB's UK branches from 340 to 658.

Lynne Peacock, chief executive of NAB in the UK, said last December: "Rest assured Clydesdale and Yorkshire Banks remain in a strong position and well placed to take advantage of any future growth potential."

RBS is assessing the bids and is expected to complete the sale process in the second half of the year.