Standard Life says expects counterbid for A&L

LONDON (Reuters) - Spain's Santander (SAN.MC) is buying British bank Alliance & Leicester ALLL.L on "giveaway terms" and a higher counterbid is likely in the next few months, one of the UK bank's biggest shareholders said on Monday.

David Cumming, head of UK equities at Standard Life Investments, which owns 2.4 percent of A&L, said in a statement: "This is a gorgeous deal for Banco Santander. They are acquiring Alliance & Leicester on giveaway terms.

"Given the potential integration benefits other banks must surely be reviewing their options. I would be amazed if no one else counters with a higher offer in the next few months."

Santander said it had agreed to buy A&L for 1.3 billion pounds.

(Reporting by Steve Slater)