Bank of Scotland Makes Bid for NatWest

Bank of Scotland launched a hostile $34.3-billion takeover bid for National Westminster Bank, a company three times its size, in what would be Britain’s largest corporate takeover. NatWest quickly rejected the offer, and its shares soared as analysts speculated that other bidders would join the pursuit. Peter Burt, chief executive of Bank of Scotland, said his company first approached NatWest about a merger in 1997 but was rebuffed. “Bank of Scotland has been growing since then and NatWest has been doing the opposite,” Burt said. He said Bank of Scotland decided to move after NatWest made a $17.7-billion offer to buy insurer Legal & General Group. Bank of Scotland’s offer values NatWest at a 20% premium over its closing price Thursday on the London Stock Exchange. NatWest’s American depositary receipts surged $27.81, or 27.5%, to close at $128.81 on the NYSE amid expectations of even bigger bids from companies looking to break into the lucrative British market.