The bank said it made a statement after the UK Takeover Panel requested clarification of its position following media reports saying the bank was planning to increase its bid.

On Wednesday, Reuters reported that the Bank of Scotland had discussed with investment banks ways of raising an extra 2.5 billion pounds ($4.06 billion) so it could increase its hostile takeover bid for National Westminster Bank Plc to 15 pounds a share. Bank of Scotland discussed with Salomon Smith Barney, Credit Suisse First Boston and Morgan Stanley & Co the underwriting of a 2.5 billion pound capital raising to back an increase in its takeover bid, a banking source said.