Lloyds TSB, Britain's fifth biggest bank, saw its share price surge by more than 6% today on mounting speculation it could soon face a takeover bid, possibly from Spanish rival BBVA.
One anonymous London-based dealer said that 'people are piling in, scared of missing the next takeover. 'There is talk of either BBVA or a large US bank making a bid at around 700 pence per share and with so many of these rumours coming true in the past few weeks, no-one is playing this one down,' he added.
BBVA, Spain's second biggest bank, declined to comment in Madrid.
In late 2004, Spain's biggest bank Santander Central Hispano (SCH) bought British rival Abbey for £8.5 billion sterling.
