Osmond fails in £2bn Clydesdale bid as race for Lloyds branches hots up

HUGH Osmond, chairman of Sun Capital, has been knocked back after making a £2 billion offer for the Clydesdale and Yorkshire banks, it emerged last night.

Osmond, one of three bidders still in the race to acquire the 632 branches of Lloyds Banking Group, made what was said to be an “early stage” offer for the two banks this week.

National Australia Bank, owner of the Clydesdale and Yorkshire, declined to comment but sources say it rejected the approach and it is not engaged in talks.

Analysts say Osmond, the Punch Taverns to Pearl insurance tycoon, needs a banking infrastructure behind him if he is to overtake Co-operative Bank and even the NBNK acquisition vehicle led by Lord Levene who are jostling with Sun to acquire the Lloyds assets. Second round bidding is due to close this weekend.

NBNK is understood to have offered almost £3 billion for NAB’s 330 Clydesdale and Yorkshire branches as a platform to mount a bid for the Lloyds branches.

A week ago Mark Joiner, executive director for finance at the British banks’ parent group National Australia Bank, surprised the markets by publicly ruling out a disposal.

But analysts interpreted his comment that it was a “rotten time to sell” as an indication that NAB may sell the banks at the right price.