Article: City: Royal Bank plans NatWest bid Counter offer worth pounds 25bn will trump BoS after scheme for joint Scottish takeover collapses

ROYAL Bank of Scotland is preparing a counter bid for National Westminster Bank which will trump arch rival Bank of Scotland's pounds 22bn hostile offer.

Sir George Mathewson, Royal Bank's chief executive, appointed Merrill Lynch and Goldman Sachs, the American investment banks, on Friday to prepare a pounds 25bn counter offer. Executives from the bank and the two advisers were hammering out details over the weekend.

The Sunday Telegraph has discovered that the two Scottish banks were preparing a joint bid to carve up NatWest until a week ago. Investment bankers say the discussions were started by Mathewson after NatWest's share price slumped following its agreed pounds 10.7bn bid for Legal ...

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