From: John Boyle 
Newsgroups: uk.finance
Subject: Re: Portman BS to merge with Nationwide
Date: Sat, 16 Sep 2006 13:32:11 +0100

In message <%xNOg.16411$Mh2.15543@newsfe6-win.ntli.net>, Colin Reddish 
 writes
>Portman Building Society have announced that they plan to merge with the
>Nationwide Building Society. I find this an surprising development. Has
>anyone any theories on why Portman and/or Nationwide have taken this
>decision.

I dont think  it is surprising, in fact I think we will see more smaller 
societies being gobbled up and or merging to obtain a critical mass. 
B./Socs are struggling to compete because of their high cost base caused 
by a branch network. Many dont have a credit rating and therefore can 
not borrow as cheaply as the big boys and they must rely to a greater 
extent on their depositors. This take over removes the cost of the whole 
central management of the Portman and will drive down their cost of 
funds.
-- 
John Boyle