Canada's TD Bank plots 8 bln stg raid on RBS U.S. arm - paper

Reuters

LONDON, Oct 13 (Reuters) - Canada's Toronto-Dominion Bank is considering an 8 billion pound ($12.8 billion) bidfor Royal Bank of Scotland's American retail bankingbusiness Citizens, The Sunday Times reported without citingsources.

The newspaper said the Canadian bank has long covetedCitizens and has become more interested since the summer.

TD Bank and RBS both declined to comment on the report.

RBS, 82 percent owned by British taxpayers, said in Februarythat it would sell 20-25 percent of Citizens in the next twoyears through an initial public offerring in New York.

It is under pressure from lawmakers to focus on lending toBritish households and businesses, and from Britain's financialregulator to bolster its capital position.

Analysts have said that a full sale of the U.S. businesscould raise as much as 8 billion pounds.

Toronto-Dominion is one of a number of parties to have beenlinked with a takeover of the business, but Chief Executive EdClark dismissed the idea in February, saying that a deal wouldnot meet his bank's stated criteria for acquisitions.

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