Alliance & Leicester shares rise on Lloyds TSB bid speculation
25/02/08

Shares in Alliance & Leicester jumped 9% when trading opened on Monday after newspaper rumours that Lloyds TSB is mulling a bid for the mortgage lender.

By 8.20am trading in the shares (AL.) had become more muted but the stock was still up 5.1% to 535p. It followed a torrid week for the shares last week which saw them fall as low as 480p.

Reports have suggested that Lloyds TSB, (LLOY) which is to announce its results this week, could also bid for Bradford & Bingley (BB.) and the stock was rewarded for this possibility with a share price jump which sent it to the top of the FTSE 250 risers board in early trading, The stock jumped 4.9% to a price of 107.75p.