Brandes puts stamp on Abbey

AMERICAN investors Brandes, Franklin Templeton and Fidelity own about a fifth of ailing bank Abbey National after building up their holdings in the hope of a takeover or a recovery.

City gossips suggest Brandes, which has piled up a 7.1% stake this year, has been picking up more shares this week.

Abbey, down 9 1/2p at 454p, has been the subject of takeover rumours after receiving an informal approach from Banco Santander. Other overseas banks, including Citigroup, have been tipped as potential predators.

The group is midway through a three-year recovery plan under executives Luqman Arnold and Stephen Hester. They are under pressure to fulfil a pledge that improvements in personal financial services will begin to show in the second half of this year.