Shareholders may abandon the sale after offers failed to meet the digital lender’s £600m valuation demand.
Atom Bank’s sale process is at risk of collapse after bids failed to meet the £600m valuation sought by shareholders, including BBVA and Toscafund. Pollen Street Capital submitted an offer but fell below expectations, with no higher bid anticipated, sources said.
The £600m target follows a fundraising last year, but buyer interest has been limited. Yorkshire and Leeds Building Societies reviewed the business but opted against formal bids, while other banks also declined to proceed. Atom, a branchless digital bank with 250,000 customers, employs 600 staff.
Failure to secure a sale could trigger leadership changes, with some shareholders pushing for management overhauls, including potential exits for long-serving CEO Mark Mullen.