Alliance & Leicester (A&L), a major UK bank, has agreed to a deal regarding its sale to Banco Santander, a banking company based in Spain. The deal, which is worth £1.2 billion, means that shareholders will receive one share in Santander for every three shares they hold in A&L.
Santander said in a statement that "Santander and A&L announce that they have reached agreement on the terms of a recommended acquisition by Santander of A&L, which is to be effected by means of a scheme of arrangement under sections 895 to 899 of the Companies Act [2006]."Sections 895 to 899 of the Companies Act 2006 focus on, among other things, the meeting of creditors and members and the duty of directors and trustees to provide information. Section 897 requires the company to "explain the effect of the compromise or arrangement" to the shareholders when an acquisition takes place.
