1. Most Discussed
  2. Gainers & Losers
ANZ $30.28

anz cool on kiwi bank bid

  1. fairdinkum1

    636 Posts.

    ANZ cool on Kiwi bank bid
    By Tim Boreham
    September 25, 2003
    NEW Zealand's Commerce Commission is today expected to clear the way for the ANZ Bank to take over the National Bank of New Zealand.

    But despite being the only known genuine bidder, the ANZ is playing it cool on whether it really wants to embark on its biggest ever acquisition.

    There is also a widening gulf between what the ANZ is willing to pay and what NBNZ's parent, the UK Bank Lloyds TSB, is willing to accept.

    Lloyds is hoping for $6.5 billion, but "potential buyers are looking at a number well south of this", according to a UK-sourced Goldman Sachs research note.

    NZ Commerce Commission approval is vital for any of the existing players in the NZ market, which includes the Big Four Australian banks.

    It is expected the ANZ's proposal will be deemed as acceptable because it is the smallest bank in the market with a 14 per cent share.

    Merging with the NBNZ would increase this to 40 per cent - a hefty market share but falling short of a dominant position.

    However, sources close to the deal said the ANZ was yet to lodge a formal bid, with the bank mindful of overpaying given the lack of price tension in the bidding process.

    The ANZ is also believed to be wary of the cultural issues involved in integrating NBNZ, seen by many as a fiefdom of powerful chief executive Sir John Anderson.

    "It is an excellent bank but it is very much run as Sir John's show," said one banker. "There is a question as to how a bank run in a top-down way fits in with the way an Australian bank is run, which is a more collaborative effort by senior management."

    Westpac and the Commonwealth Bank have pulled out of the process, while the National Australia Bank was never a starter.

    "Lloyds still has to agree to sell it at a price (the ANZ) wants to buy it at," the source said.

    The ANZ is convinced it is the sole bidder, but Lloyds' representatives have referred to several other possible bidders.

    Possible buyers include HSBC - which recently bought AMP Banking's NZ loan book - and Citibank.

    The Halifax Bank of Scotland - which affirmed its interest in the region by taking 100 per cent control of BankWest - is an outside possibility.

    Unlike an Australian bank, these banks would not require NZ Commerce Commission approval because of their negligible presence in the NZ market.

    Lloyds hopes to complete an NBNZ trade sale by November, with a public float vaunted as the less preferable back-up plan.

Before making any financial decisions based on what you read, always consult an advisor or expert.

The HotCopper website is operated by Report Card Pty Ltd. Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, you should before acting on the information or advice, consider the appropriateness of the information or advice in relation to your objectives, financial situation or needs. Please be aware that any information posted on this site should not be considered to be financial product advice.

From time to time comments aimed at manipulating other investors may appear on these forums. Posters may post overly optimistic or pessimistic comments on particular stocks, in an attempt to influence other investors. It is not possible for management to moderate all posts so some misleading and inaccurate posts may still appear on these forums. If you do have serious concerns with a post or posts you should report a Terms of Use Violation (TOU) on the link above. Unless specifically stated persons posting on this site are NOT investment advisors and do NOT hold the necessary licence, or have any formal training, to give investment advice.


Thank you for visiting HotCopper

We have detected that you are running ad blocking software.

HotCopper relies on revenue generated from advertisers. Kindly disable your ad blocking software to return to the HotCopper website.

I understand, I have disabled my ad blocker. Let me in!

Need help? Click here for support.