 Lloyds TSB is the UK's fifth largest bank |
Shares in Lloyds TSB have risen by more than 2% on speculation of a takeover bid from US bank Wells Fargo. A spokeswoman for Lloyds TSB, the UK's fifth largest bank, declined to comment, but investors snapped up shares in the lender.
By 1425 BST, Lloyds was the highest riser on the FTSE 100 index of leading London shares, up by 2.09%.
Analysts were divided on whether Wells Fargo would actually come forward with an offer, and whether it would succeed.
Long-running speculation
 |  Wells Fargo has a large part of its business in the retail banking arena, so to takeover someone like Lloyds would make a lot of sense |
"There have long been rumours surrounding Lloyds as a potential takeover bid target," said Angus Campbell, head of sales and marketing at financial bookmaker Finspreads.
Mr Campbell added that Lloyds TSB would represent a good fit for the US bank.
"Wells Fargo has a large part of its business in the retail banking arena, so to takeover someone like Lloyds would make a lot of sense," he said.
An unnamed analyst at investment bank Keefe, Bruyette and Woods, said he was not convinced that Lloyds TSB would be interested in any sale.
"We would be surprised if a big UK bank sold itself in the near future," he said.
"In our opinion, managements believe their strategies are working and none are financially distressed."
Regulation problems
The Keefe, Bruyette and Woods analyst added that Wells Fargo would also face regulatory hurdles.
Wells Fargo is the fourth largest bank in the US by stock market value.
Headquartered in San Francisco, it has more than 23 million North American customers.
In July Lloyds TSB reported a 7% rise in half year pre-tax profits, reaching �1.7bn ($2.9bn) compared to �1.6bn for the same period a year earlier.
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