THE 300 year old Bank of Scotland was tabled as a possible takeover target yesterday by Standard Life's decision to review its large stake in the bank.

The bank confirmed that pensions mutual Standard Life was reviewing its options "with regard to a possible sale of some or all of its 32.2 per cent stake".

Standard Life has held this interest in the bank since 1985 but is now considering lessening its £900 million sterling exposure.

Analysts said the announcement introduced significant uncertainty into the bank's immediate future For while it believed to favour the selling of sizeable chunks of Standard Life's holding to large institutions, a bidder may emerge.

"It is going to heighten any takeover speculation if the major strategic stake is sold. This does put it into play, but it's difficult to say who [might bid for it]," said one.