FSA gives nod to Spain's Abbey bid

THE Financial Services Authority today said it had given the green light to Banco Santander Central Hispano's takeover of Abbey National.

In a statement to the Stock Exchange, the City watchdog said it had 'approved' the £9.1bn takeover, which was unanimously backed by SCH's shareholders last month. The deal is expected to be completed on 12 November.

The FSA said in October it saw 'no material barrier' to the Spanish bank buying Abbey National, despite senior SCH board members, including chairman Emilio Botin, facing trial in Spain for alleged misappropriation of severance payments to former executives.

At a stormy shareholder meeting last month, one Abbey investor accused the SCH board of being 'a bunch of shysters, next to the Mafia'.

Abbey shareholders are being offered shares in the Spanish bank and a small amount of cash.

Abbey National shares gained 6 1/2p to 642p today.