Coventry Building Society has reportedly put forward a takeover offer for the Co-operative Bank.
Talks between the two sides are ongoing, although the discussions are not being held on an exclusive basis, Sky News reported today.
The deal would effectively demutualise the bank and create a financial services powerhouse with close to £90bn in assets, the report added.
A spokesman for Coventry Building Society said: “At Coventry Building Society, we remain open to opportunities that may enhance the value and services we offer to our current and future members, but we don’t comment on any public speculation.”
The Co-operative Bank declined to comment on the report.
The Co-operative Bank confirmed last month that it was “exploring potential strategic opportunities”.
“There is no guarantee that such discussions will result in any eventual transaction. In the meantime, the bank remains committed to its strategy to continue to drive significant positive outcomes for all of our stakeholders,” the bank said at the time.
Private-equity-backed Shawbrook has also reportedly made an offer for the bank. Specialist lender Aldermore ditched its offer late last month.