DIRECTORS of banking giant Abbey have faced a barrage of criticism from shareholders angry at the decision to sell out to Spain's largest bank.

Investors jeered and heckled Abbey chairman Lord Burns as they questioned the £9 billion acquisition by Santander Central Hispano (SCH).

Members of the 800-strong audience applauded the suggestion that they should vote against the purchase.

Longstanding shareholder Richard Pout asked: "If you can't communicate between London, Milton Keynes, Sheffield and Stockton...how are you going to deal with management in Spain?"

Investors at the EGM in Wembley were present to vote on the proposed cash-and-shares takeover, with a view to its completion in November.

Shareholders spent more than two hours discussing the deal but their opposition was overwhelmed by the votes of City institutions.

Another investor accused the board of a hurried transaction that was "done in a weekend".

He said he did not agree with the way a deal involving so many small shareholders had been conducted.

He added: "Abbey has a very special duty of care to these shareholders which I don't think has been carried out in landing them with foreign shares."

Abbey National has around 1.7 million small shareholders who received windfall shares when it converted from a building society in 1989.

Lord Burns said he was satisfied the board had got a good price for Abbey and that this was the right move for the company. He believed the group would emerge a "stronger, more competitive force on the high street" under the deal.

But shareholders continuously heckled the chairman - and even each other - as they suggested the takeover should be blocked.

First published: October 18