Building society in merger talks

BRITAIN'S third biggest building society is in talks to merge with a smaller rival in the latest of a series of tie-ups in the struggling sector, it emerged yesterday.

Coventry Building Society is discussing the possibility of joining forces with Stroud & Swindon in a move that could create a new enhanced player with more than 20 billion in assets. Negotiations are at an early stage after Coventry approached the smaller group earlier this year.

Stroud marketing director Linda Will confirmed the talks, saying:

"We are in very early stage talks about which there is no detail."

Coventry has 1.2 million members and 18.5 billion of assets. Stroud has 265,000 members and just under 3bn in assets.