MORTGAGE bank Abbey National has rebuffed Lloyds TSB's near £20bn conditional offer, saying the terms of the proposed deal "remain inadequate".

The bank said its board had met to consider the pre-conditional offer, announced on January 31, and noted the terms were "the same as those proposed by Lloyds TSB in December". It added that the "proposed offer terms remain inadequate and subject to material uncertainties".

Lloyds' proposed cash and share bid had been conditional on Abbey recommending the offer, and also on the deal not being referred to the Competition Commission - a decision which was expected by February 23.