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NatWest clock starts ticking
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October 15, 1999: 4:33 a.m. ET
Bank of Scotland confident of support after launch of formal $35B bid; lines up financing
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LONDON (CNNfn) - Bank of Scotland lined up the financing for its hostile $35 billion takeover bid for larger rival National Westminster and said Friday that it was "very pleased" with support for the bid.
The Scottish bank formally launched its offer after markets closed Thursday, with speculation growing that at least two other institutions may join the race for control of Britain's third-largest bank.
Bank of Scotland shares bucked a falling London market with a 1.1 percent advance in early trading Friday while NatWest slipped backed 0.6 percent to 1,395 pence, still 33 percent above their pre-offer level..
The Scottish bank also lined up a 1.5 billion pound ($2.48 billion) debt issue to underwrite a stock and note offer valued at 21 billion pounds.
The offer document maintained Bank of Scotland's strategy of attacking the failure of existing NatWest management and promised to cut 1.015 billion pounds ($1.67 billion) in costs over three years from what analysts describe as country's least efficient bank.
Natwest last week ousted chief executive Derek Wanless in an attempt to fend off the bid, sacrificing the individual most closely identified with its failed attempt to become a global player in retail and investment banking.
The bank also dropped its $17 billion offer for insurer Legal & General (LGEN) and said it may sell other assets to fend off its rival.
NatWest has until October 28 to submit its formal defense plans and shareholders have 60 days to decide on their formal verdict.
NatWest maintained that the offer was "ill thought-out" while analysts expect its defense to prompt a rival offer. Royal Bank of Scotland (RBOS) is seen as the most likely contender. 
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