1249 GMT - The only rationale for NatWest's reported interest in Santander UK is its novelty as a potential for-sale asset, analysts at Keefe, Bruyette & Woods say. The Financial Times reported that the Spanish bank rebuffed an 11 billion pound bid at a premium for its U.K- business. The analysts point out that the proposed deal is surprising on NatWest's part given its lack of interest in Virgin Money UK last year, which sold at lower earning multiples, Edward Firth and Elise Yu Ge write. "It is clearly disappointing that... NatWest has barely exited the government after 18 long years and yet management is already looking for 'spicy' uses for capital," they add, noting the transaction wouldn't have brought it meaningfully financial benefits. NatWest shares rise 0.6% and have gained 21% year to date. (elena.vardon@wsj.com)

(END) Dow Jones Newswires

May 13, 2025 08:53 ET (12:53 GMT)

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