London — Shares in lender CYBG rose as much as 3% on Monday after it announced a revised bid for rival Virgin Money, increasing the likelihood of a deal that would create a new competitor to Britain’s biggest banks.CYBG, owner of Clydesdale and Yorkshire Bank, and Virgin Money, founded almost 25 years ago by British entrepreneur Richard Branson, would combine to create Britain’s sixth-largest bank by assets, albeit one still dwarfed by rivals such as Lloyds and Royal Bank of Scotland (RBS).The revised offer values Virgin Money at about £1.6bn based on Friday’s closing share price.The CYBG-Virgin deal comes at a time when mid-sized banks like them in Britain face competition from both the incumbents with their bigger branch networks and technology budgets, and nimbler digital-only rivals like Monzo, Starling and Atom.CYBG said on Sunday it had improved its all-share offer for Virgin Money by raising the exchange ratio by 7%, an increase which analysts said should be enough to get the...

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