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NAB-HBOS bid rumours continue

NAB-HBOS bid rumours continue

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Date Published : Friday, June 27, 2008

Rumours that the largest bank in Australia is preparing to make a bid for Halifax Bank of Scotland's business in the country have stepped up a gear after insider information regarding the affair has come to light.

According to Bloomberg, two people (who wished to remain anonymous) connected with National Australia Bank said that the lender met with advisory firms earlier this month to discuss a bid for HBOS.

They suggested that National Australia is mostly interested in HBOS' Bank of Western Australia but has yet to make an offer for the Perth unit, while the UK-based lender has so far not solicited any bids.

Analysts have said that HBOS' Perth unit could be worth $7.3 billion (£3.7 billion), the news agency noted.

Commenting on the rumours, HBOS chief executive Andy Hornby said: "There is speculation all the time about HBOS. I am not going to comment on our Australian business. It is a great business and it is performing well."

However, when questioned by Bloomberg about the speculation, a spokesperson for National Australia refused to give any comment.

The news agency pointed out that should National Australia put in a successful bid for HBSO, it would be "tapping into growth in Western Australia" as over the last three years there has been a mining boom in the region which has served to bolster the local economy.

Earlier this month, National Australia Bank launched a small loans pilot in connection with Mobile Finance Pty in a bid to bring fairer lending to the fringe credit market.

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