The Takeover Panel is investigating Bank of Scotland's (BoS) agreement to sell NatWest Life to Prudential for an estimated £800m, reports The Times.

The Panel is considering whether the deal, which is conditional on BoS winning the hostile bid for NatWest, is in breach of rules on shareholder and bidders acting as a 'concert party'. The Panel could prevent Prudential, NatWest's biggest shareholder, from casting its vote in favour of the BoS bid if it finds the deal breaches the rules. NatWest's chances of remaining independent are considered to have improved, as some analysts believe neither bidder will get a clear majority.