There is still scope for Merrill Lynch and JP Morgan to close an acquisition deal for Lloyds TSB, despite the UK bank's approach to Abbey National being rejected.
Lloyds TSB, advised by Merrill Lynch and JP Morgan, said it is still considering the options since Abbey knocked down its takeover proposal as "unattractive" on Thursday. Analysts in London are widely expecting a hostile bid to follow. It remains unclear, however, whether Lloyds will step in before or after Abbey - advised by UBS Warburg, Lehman Brothers and Morgan Stanley Dean Witter - ties the knot with Bank of Scotland.