And you thought you had property problems - chapter two

NatWest, looking increasingly vulnerable to the takeover bid from the much smaller Bank of Scotland, could see its headquarters reduced to a brass plate if it loses.

"I don't see any need for more than that," says BoS chief executive Peter Burt.

The Bank Of Scotland reckons it can cut combined operating cost by over £1bn within three years. This will come mainly through consolidation of support functions and the elimination of duplicated services. Property also offers scope for rationalisation. There are already proposals from third parties, apparently, interested in buying the NatWest portfolio outright or in doing an outsourcing deal.

Elliott Chase