Abbey makes its play for N&P

National & Provincial Building Society confirmed it had received a detailed offer from Abbey National to buy it, as well as "a number" of others from potential partners.

N&P is keen to decide which suitor to accept as soon as possible, which sources interpreted to mean within three to four weeks. The society insisted it would opt for the offer that best suited future members as well as present customers.

Abbey National's offer document runs to 43 pages. The other half-dozen proposals were equally as detailed, sources said.

Abbey's offer is believed to be for at least pounds 1.1bn, which is equal to 1.5 times N&P's net asset value.

Alliance & Leicester Building Society is understood to be another of the bidders. Other names that analysts expect to be on the list include Nationwide Building Society and Yorkshire Bank, owned by National Australia Bank. None would confirm or deny their interest.

Those previously thought to be contenders but which yesterday ruled themselves out include Woolwich, Britain's third-largest building society, Bank of Scotland, TSB and Royal Bank of Scotland.

National & Provincial said that given the differing nature of the proposals it was not possible to say precisely how long it would need for a thorough evaluation. Alastair Lyons, its chief executive, said: "We will seek to minimise the period of uncertainty created for our members and employees by Abbey National's unilateral announcement,"

Abbey unveiled its plans in a controversial public statement a month ago. Building societies, already fearing a "duck-shoot" at the hands of the banks, regard it as a hostile approach, the first in the sector.

Abbey rejects this, pointing out that any deal will have to be approved by a big margin of N&P's customers under tough building society legislation.

Abbey said yesterday that it "remains confident that both N&P's staff and its members will benefit from the proposed merger of Abbey National's and N&P's complementary businesses."

Alliance & Leicester refused to comment on any N&P bid, and said it was looking at all possible future strategies. "Our chief executive Peter White has made no secret of the fact that, like every other society, we have been talking to others. We are interested in mergers, but it has to be a good match."

Nationwide similarily said it was considering all options. "What we have said is that it would not be a surprise if we were talking to other societies both on strategic and operational issues."

National Australia's ambitions meanwhile have put it and Yorkshire near the top of the market's candidates, though its response was considered: "The NAB are actively looking at building societies and N&P may be a possibility," a spokesman for Yorkshire said.