Was Alliance & Leicester hasty in Santander deal?

Alliance & Leicester was never a bank to worry the likes of Halifax or RBOS, however it still came as shock to many at how quick they agreed a deal with Abbey owners Banco Santander.

A&L investor has been hanging around for some time in the hope of their bank being taken over. However; many are now sad as Alliance & Leicester will no longer be a UK bank.

It is sad to see that a Spanish bank will now be the owners of A&L, it would have been nice for a UK company to purchase the bank, but they were in such a weak position that they did not have a strong negotiating position, which is why they buckled so quickly from the Santander offer.

According to the Financial Times harry potter and the sorcerer s stone divx Santander will come out better from the offer; they have offered A&L a 9 per cent premium on their average share price over the past four weeks. The deal should offer Santander a 19 per cent return on investment.

It would have been a nice thought for A&L to be bought out by a UK bank, but bids were a bit thin on the ground, so surely it is better to agree to a deal with Santander than no deal at all?