BRITAIN's National Westminster Bank Plc is reportedly in talks with Abbey National about a £25 billion sterling merger. However, the company would not comment on the reports.

"NatWest has been linked with up to 25 companies in newspaper reports over the past 12-18 months," said a NatWest spokesman. "It is our policy never to comment on market rumour or speculation."

A newspaper report said discussions had been held at the highest level, with Nat West represented by chairman Lord Alexander, and chief executive, Mr Derek Wanless; and Abbey by chairman Lord Tugendhat and chief executive, Mr Peter Birch.