National Westminster Bank, Bank of Scotland made its formal offer to Natwest shareholders Thursday.

In the document, Scotland's second-largest banking company struck at Natwest's recent efforts to revitalize the company in the eyes of its shareholders by appointing new senior management.

Bank of Scotland called Ron Sandler, the former chief executive of insurer Lloyd's of London, who was named chief operating officer last Friday, "an outsider with no bank experience."

Bank of Scotland reiterated its plan to slash costs by consolidating processing centers, outsourcing more activities, and combining the two banks' information technology systems. Bank of Scotland added that it has already received inquiries from third parties that are interested in assuming Natwest's property investments.

In response, Natwest said "the offer significantly undervalues Natwest" and once again labeled Bank of Scotland's efforts "ill-thought-out."

The $302.7 billion-asset British bank said it would shortly send shareholders a document explaining its reasons for rejecting the offer.

-- Laura Mandaro

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