Morgan Stanley analyst
Investors have long expected a tie-up between
Since then, shares in
They said a deal would result in potential cost savings of at least £36m a year as they cut overlapping functions.
In his note, Rollo also estimated that the disposal of some non-core businesses could pave the way for a £1bn cash return for shareholders "at some point".
However he said the deal was "strategically questionable"for
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