Finance News - News Home Credit Card News Banking News Loans News Insurance News Investments News News Archive Finance News Search

Finance News

Compare Credit Cards

Compare Banking

Compare Loans

Compare Insurance

Investment Providers

Advertisements
    Allianz Insurance - click here

Australian bank 'closer to deal'

Australian bank 'closer to deal'

Related articles

Date Published : Tuesday, May 27, 2008

A deal that would see the Westpac Banking group takeover its fellow Australian financial services giant the St George Bank has moved closer in recent days.

Reports suggest that a bid worth a total of around $16.6 billion will be enough to ensure the completion of an arrangement that will see an AA-rated financial institution established in Australia.

Gaining such a rating is viewed as being a distinct advantage for a business operating in an industry sector seemingly beset by concerns over credit risk and bad debt.

The offer equates to 1.31 Westpac shares for every St George equivalent and muted speculation continues over whether the National Australia Bank (NAB) is likely to table a bid of its own.

Assuming no rival deal is forthcoming, Westpac is expected to receive shareholder approval from St George in November and to have taken over the banking group later the same month.

Argo Investments banking analyst Christopher Hall told Reuters: "I am not a subscriber to that theory about NAB making a bid."

"[Gail Kelly Westpac's chief executive] knows every nook and cranny of that business, and for anyone to come in over the top they take the additional risk of not knowing every aspect of it," he added.

Last week, John Stewart chief of the National Australia Bank told the Australian newspaper that the worst effects of the credit crunch witnessed worldwide in recent months "might be over".

Compare credit cards.ADNFCR-1411-ID-18611146-ADNFCR

 

 

 

Latest Money News from Money-Au.com.au

  • Finance News
  • Credit Cards
  • Banking News
  • Loans News
  • Insurance News
  • Investments News
Advertisements
St.George Bank - click here   iSelect - click here