US investment bank Citigroup is considering a possible £1bn bid for Egg PLC, the internet bank, according to reports.
It is understood that Citigroup chief executive Chuck Prince had given approval for small, bolt-on European acquisitions. “Egg would fit the bill in this respect” one analyst reportedly said but Citigroup itself refused to comment.
Egg is 79% owned by Prudential PLC, the British Insurance group headed by Mark Tucker. Analysts believe it is only as matter of time before Tucker decides to sell Egg, which has attracted interest from MBNA, the US credit card operation, and from Royal Bank of Scotland PLC and HBOS PLC.
