A potential buyer for the British arm of bankrupt US bank Silicon Valley emerged on Sunday as Prime Minister Rishi Sunak said his government was working to limit any repercussions on companies from the bank’s collapse.
The Bank of London said it had submitted a formal proposal for the British arm of Silicon Valley Bank and had sent it to authorities including the Treasury and the Bank of England.
The tragic bankruptcy of Silicon Valley Financial Group, a group focused on technology start-ups, Friday is the largest bank collapse in the United States since the 2008 financial crisis.
British Finance Minister Jeremy Hunt said on Sunday that bankruptcy could have a huge impact on British technology companies, given the importance of Silicon Valley to some clients.
The Bank of London, a clearing bank, said it was heading a consortium of private equity firms to complete the deal.
A source familiar with the talks told Reuters that Oak North, owned by SoftBank, is also considering a bid for SVB UK, confirming an earlier Sky News report. And Sky reported that the holding company (ADQ) in Abu Dhabi is also studying the matter.
Two people familiar with the discussions told Reuters on Saturday that consulting firm Rothschild & Co. is exploring options for the Silicon Valley subsidiary.
Sunak said he understood the “anxiety and concerns of the bank’s customers” in comments he made to reporters who accompanied him on his flight to the United States.
Upon his arrival in San Diego, Sunak told reporters that over the previous days and during his flight from London he had been working with his finance minister, the Bank of England and regulators to “find the perfect solution”.
