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Metro Bank (MTRO) shares hit as Carlyle quits takeover talks

By Adrian Holliday

09:56, 18 November 2021

Exterior of a Metro Bank branch
Metro Bank shares have dropped following the end of takeover talks with the Carlyle Group – Photo: Shutterstock

Metro Bank (MTRO) shares fell more than 15% this morning as hope for a bid from US private equity firm Carlyle petered out. Carlyle had a full fortnight – Thursday 2 December, 17:00 GMT – to formally lodge its bid. The private equity firm now must bend to tight City restrictions for six months. It cannot announce another offer in this time.

The Carlyle takeover discussions had given strong support to Metro Bank’s share price, which had slipped by more than 50% during the Covid-19 crisis. The Carlyle takeover negotiations saw the challenger bank’s share price rise more than 30%, valuing it at more than £240m ($323m, €285m).

Metro Bank undergoes new setback

In 2019 the banking player was shaken by an accounting blunder, which led to a spate of executive resignations. It’s believed the accounting error was related to how commercial buy-to-let loans were classified. 

Capital contacted Metro Bank this morning, but it was unavailable to respond. In a statement, Metro Bank said it “strongly believes in the standalone strategy”. 

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15,706.20 Price
-1.730% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 1.8


2,025.99 Price
-2.200% 1D Chg, %
Long position overnight fee -0.0193%
Short position overnight fee 0.0111%
Overnight fee time 22:00 (UTC)
Spread 0.50


41,419.55 Price
+4.020% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00


0.62 Price
-0.700% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168

Further low interest pressure 

Metro Bank has had to grapple with low interest rates, applying some pressure on profitability. However, the spectre of higher UK interest rates in the future may still add some lustre to Metro Bank’s longer-term prospects.  

Its competitors include not just traditional high street lenders, but fintech competitors like Starling, Tide and Monzo. At around 09:30 GMT Metro Bank shares were trading at 109.60p.    

Read more: Metro Bank shares surge as it confirms Carlyle Group approach

Markets in this article

Metro Bank
0.395 USD
-0.005 -1.320%
Metro Bank
0.395 USD
-0.005 -1.320%
Metro Bank
0.395 USD
-0.005 -1.320%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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