The story
Early history
The Alliance & Leicester Building Society was formed by the merger of the Alliance Building Society (originally based in and called the Brighton & Sussex Equitable Building Society) and the Leicester Building Society on 1 October 1985. In July 1990 the society acquired Girobank, a major provider of cash handling services to the government and large companies which also offered current accounts from the Post Office.
With other large building societies such as Halifax and Woolwich, Alliance & Leicester decided to float on the London Stock Exchange, generating windfall payments to members worth up to £5,000 each. Flotation took place on 21 April 1997.
From the end of the 1980s until the mid-1990s, Alliance & Leicester undertook a long-running television advertising campaign, featuring comedians Stephen Fry and Hugh Laurie.
Takeover
Alliance & Leicester had to be offered a secret £3 billion credit line by HM Treasury in November 2007 to prevent insolvency and a run on the bank. On 14 July 2008 the board of A&L recommended that shareholders accept a takeover bid from Banco Santander for around £1.26 billion. This recommendation was ratified by shareholders at meetings on 16 September 2008. The takeover took effect on 10 October 2008, when shares of the company were delisted from the London Stock Exchange.
The bank transferred its business into Santander UK on 28 May 2010, following a hearing at the Royal Courts of Justice on 13 May 2010, as part of the procedure within the Financial Services and Markets Act 2000.
Until this time, Alliance & Leicester was run as a separate institution with its own banking licence while at the same time migrating customer accounts to the Partenon software system. Abbey and the Bradford & Bingley savings business were rebranded in January 2010. Branches of Alliance & Leicester were rebranded at the end of 2010.
From Wikipedia’s article on Alliance & Leicester, shared under CC BY-SA 4.0.4