Egg attracts interest from Capital One

E-bank sale drags on

The long-running saga concerning the sale of Egg has taken a new twist with yet another company emerging as favourite to buy the UK Internet bank.

Capital One, the US credit card giant, has offered £1.4bn for the Prudential's 79 per cent share in Egg, according to The Sunday Telegraph. The emergence of Capital One as a favourite to buy Egg comes as a bid by former front-runner, US rival MBNA, appears to be running out of puff, the newspaper reports.

Capital One was established in 1995 and has become a major player in the credit card industry, with 46.7m customers and managed loans totalling $71.8bn (£39bn).

The Pru has been looking for a buyer for its Internet bank for more than six months. Last year, Egg more than doubled its losses to £34.4m blaming the loss on poor business in France. Good profits for the UK business - £72.8m in the UK - were eaten up by losses of £89.1m in France.

Shares in Egg were unchanged at 159.25p in early morning trading. ®

Related stories

Egg punters up, losses down
Egg decorated for site accessibility in DRC study
Lloyds TSB leads the great Egg race
Egg blames France for big losses
Pru in talks to sell Egg

Sponsored: Designing and building an open ITOA architecture