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Metro Bank Shares Jump on Early Takeover Approach by Pollen Street Capital

Unconfirmed talks to take the UK lender private have driven its stock up over 10%, signalling renewed confidence in its turnaround.

A cheerleader representing Metro Bank at the lord mayor’s show in London in 2018, months before the lender was thrown into crisis following an accounting blunder
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Overview

  • Private equity firm Pollen Street Capital has approached Metro Bank about a potential takeover, with discussions still in the early stages and no certainty of an offer.
  • Shares climbed roughly 13% on Monday to about 122p, boosting the bank’s market value above £750m.
  • Metro Bank secured a £925m rescue package in 2023 led by Colombian billionaire Jaime Gilinski Bacal’s Spaldy Investments, which now holds a majority stake.
  • The lender has slashed its cost base by reducing its workforce by about 30% to around 3,000 employees and by ending its seven-day branch openings.
  • Pollen Street Capital already owns a majority stake in Shawbrook Bank, which explored merger talks with Starling Bank and bid for the Co-operative Bank earlier this year.