Metro Bank allegedly knocked back a takeover approach from fellow challenger Shawbrook Bank last month, according to Sky News.
Sky News reports that the High Street challenger bank has received a number of approaches from Shawbrook with the last one being turned down during the final two weeks of September.
Last week Metro said it was considering a range of options as it looks to raise funds. This includes the potential sale of £3bn of its mortgage book with NatWest and Lloyds Banking Group both being mooted in the press as potential purchasers.
The bank has also been talking to bond and shareholders as it looks to raise cash before the London stock market opens tomorrow (Monday 9th October), according to Sky News.
Sky News said it was unclear if any live discussions were ongoing between the challengers and it could not establish the valuation of Shawbrook’s offers.
Meanwhile, The Financial Times has reported that US giant JPMorgan Chase has declined to bid for the bank despite having studied a potential offer.
The FT reported that a deal could have potentially been struck with the banking giants British digital banking operation Chase UK, but has now been scotched.
Chase UK launched two years ago and has managed to amass more than a million customers to date.
The FT also reported that the Prudential Regulation Authority had been sounding out potential suitors for the bank, which was the first new entrant to the High Street when it launched in 2010, with a preference for the entire business to be acquired.
Last week Metro said it was considering a range of options and has been reported to be locked in conversations over the weekend. It is understood that the bank had approached investors for as much as £600m.
The bank saw its share price crash nearly 30% on Thursday before rallying 20% on Friday to close at 45.25p.
Metro Bank has 2.7 million customer accounts and employs around 4,000 people, operating out of 75 branches across the UK.
