Shares in British bank Alliance and Leicester hit a two year high this evening on renewed expectations that it may be a takeover target this year. Shares in the mortgage bank closed up 4% higher.
Potential bidders include Bank of Ireland and Abbey National. Bank of Ireland already owns Bristol and West mortgage bank in Britain.
As one of Britain's smaller banks, A&L has been widely expected to be swallowed up after April, when its legal protection as a former building society expires.
Bid speculation increased late last year when its Managing Director Peter McNamara resigned unexpectedly. A bank spokesman declined to comment on any takeover speculation.
