Westpac ， St George bank 讨论合并

休

WESTPAC Banking Corporation is in merger discussions with St George Bank to create Australia's largest financial services company, the bank said today after its shares were placed in a trading halt.
Both banks this morning asked for trading halts in their shares to allow confidential discussions to continue and for an announcement to be made, possibly within 24 hours.

Westpac made an approach to St George Bank on Friday after the close of business.

“This would lower risk and costs for St.George, and position the combined business to withstand challenging funding markets and take advantage of opportunities created by the dislocation in capital markets,” Westpac (wbc.ASXuote,News) said.

The merger would require the approval of a range of regulatory authorities as well as the Federal Treasurer.

Westpac has engaged Caliburn Partnership as financial adviser and Gilbert +Tobin as legal adviser.

Westpac chief executive Gail Kelly, the former boss of St George (sgb.ASXuote,News), said the merger would meet customer's needs and make banking easier.

“For customers it would make it more convenient to access customer touchpoints,  including the largest distribution network with over 1200 branches and in-stores as  well as more than 2700 ATMs.

“It would also provide greater diversity and choice of products from both organisations. This would ensure that the best of each bank’s product and service capabilities can be extended across customer segments, driving significant revenue growth.”

夢回唐朝

:o

patricb

:)

黑山老妖

OMG!
Very unexpected... But then again it makes sense as Gail Kelly knows St.George so well...

patricb

原帖由 黑山老妖 于 2008-5-12 09:29 发表
OMG!
as Gail Kelly knows St.George so well...

Yes,you're right.That makes sense.
NAB has been after St George for a long time.

Artcore

New brand if the merger goes ahead, could be WestGeorge, or Georgepac, West Dragon?

黑山老妖

I like west dragon. Haha, sounds like an AFL team.

patricb

原帖由 Artcore 于 2008-5-12 09:40 发表
New brand if the merger goes ahead, could be WestGeorge, or Georgepac, West Dragon?

The discussions are on the basis that all the Westpac and St.George brands and distribution networks would be kept.

休

这个消息会刺激银行股开盘走高

黑山老妖

原帖由 patricb 于 12/5/2008 09:33 发表
Yes,you're right.That makes sense.
NAB has been after St George for a long time.

NAB is now after citigroup's local business
http://www.businessspectator.com ... -EJRD3?OpenDocument

degra

:o westorge

patricb

估计是不会有新名字了，如果合并成功，最初几年各用各的，最后到一定的时间，十有八九也是像以前合并bank of melbourne一样，全部归在westpac的名下。

gaojianli

这个消息够震撼

黑山老妖

看看ACCC和APRA有没有话说。

patricb

有得等了。。。。。。

patricb

As Gail Kelly is once CEO of St George,and now CEO of Wespac,can we name the merger as "Kelly Gang"?

休

Westpac is likely to offer $35.00 worth of its scrip for each St George Bank share, or about $20 billion, if a merger proposal announced by the two banks today proceeds.

Analysts said it was unlikely the merger would be blocked for competition or political reasons.

"A 30% premium is normally the rule of thumb,'' Pattersons Securities banking analyst Mark Topy said. "35% would be a knock-out, but if it comes in at 20-25%, it means it will be a slower and more painful process.

St George shares, which are currently in a trading halt, last closed at $26.65.

A 30% premium would value them at $34.65.

Bell Potter Brisbane senior adviser Stuart Smith said a good indication of a bid price could be the issue price of a St George equity raising conducted last November of $35.00 a share.

"That might give us an idea of where it will be pitched,'' Mr Smith said.

An offer of $35.00 a share would value St George at $19.64 billion.

Mr Smith said Westpac may have moved on St George because it felt the Federal Government would not abolish the Four Pillars policy, which prevents Australia's top four banks from merging.

St George is the country's fifth biggest bank.

Mr Smith said he thought there was a good chance a merger between Westpac and St George would get over the line.

"Because the banks have been talking about the four pillars policy for such a long time, they've now taken it into their own hands to try and bulk up so that they can compete on the international stage,'' Mr Smith said.

"It would appear that they may have sounded out the government on this, or it may have been very plain that the four pillars will stay, so this is the way to bulk up.''

Patterson's Mr Topy said he did not think there would be any political hurdles preventing the merger from proceeding.
"It's not a four pillar issue and St George was the last big bite in a sense,'' Mr Topy said.

Mr Topy said political intervention blocking a deal would send the wrong signal to the market.

"It's not a serious diminution of competition even in New South Wales,'' he said. "You've still got five banks there, you've got BankWest coming in.''

If there was to be a competition issue, Mr Topy said it could emerge in the investment platform space.

Westpac with its BT Wrap investment platform and St George with its Asgard platform are two of the biggest platform providers in the market.

"I'd wonder whether the regulators would have a look at that one,'' Mr Topy said.

西关少爷

Gail Kelly，from Head of Cutomers Service of CBA to CEO of St George, to CEO of Westpac, to CEO of Westpac-St George. What an ambitious woman!

黑山老妖

Once of the most successful business women in Australia.
On the issue of merge, NAB might want to get involved too.

西关少爷

from memory, ANZ had a go years ago but couldn't go ahead.

黑山老妖

ANZ is too weak to make a bid this time with all the troubles they are having with tricom and opes prime etc.

patricb

Update:
St.George and Westpac agree on key merger terms
St.George and Westpac today announced a proposed merger to create Australia’s leading financial services company. This approach is expected to maximise value for customers, shareholders and employees.

loushenghong

I guess this move will make people lose jobs, especially those working in the back office.  Why would you have 2 accounting/reporting/compliance/administration teams if Two becomes One.

patricb

• Would create Australia’s leading financial services company for customers,
shareholders and employees
• All Westpac and St.George brands, including BankSA, Asgard and
branch/ATM networks would be retained
• All share merger to be implemented by way of a St.George scheme of
arrangement
• St.George shareholders to receive a premium of 28.5% based on the closing
prices of shares in both companies on 9 May 2008(1)(2) and 24.1% based on
the 1 month VWAP of shares in both companies(3)• St.George Board to recommend the merger to shareholders, subject to an
independent expert confirming the transaction is in the best interests of
St.George shareholders and no superior proposal being made
• AA credit-rated financial institution, with strong capital and broad based
funding
• Generates value by creating a significantly stronger platform for growth in
Australia and New Zealand

patricb

Merger terms
The St.George Board has indicated that it will recommend to its shareholders that
they accept 1.31 Westpac shares for each St.George share held on the record datesubject to no superior proposal emerging and the independent expert’s opinion that
the merger is in the best interest of St.George shareholders. St.George shareholders
will be entitled to receive the St.George interim dividend of $0.88 per share payable
on 2 July 2008 but will not receive the Westpac interim dividend of $0.70 per share
payable on 2 July 2008, which Westpac shareholders will receive. St.George
shareholders will also receive a final dividend.
The proposed merger values St.George ordinary shares at $18.6 billion or $33.10 per
share based on the last closing price of the ordinary shares of Westpac and
St.George. Excluding the value of Westpac and St.George’s recently announced
interim dividends, this represents:
• a premium of 28.5% to the closing price of St.George shares on 9 May
2008 (4) (5);
• a premium of 24.1% to the 1 month VWAP of St.George shares(6) based on
the 1 month VWAP of Westpac shares; and
• a premium of 23.7%, to the 3 month VWAP of St.George shares(6) based on
the 3 month VWAP of Westpac shares.
St.George shareholders will own 28.1% of the combined entity and will share in the
expected benefits of combining the two organisations. Three St.George Directors will
join the Westpac Board, including the St.George Chairman, John Curtis, who will
become the Deputy Chairman of the merged group.The merger is expected to be cash earnings per share accretive for St.George
shareholders from the first full year of the merger. The merger is expected to be cash
earnings per share accretive for Westpac shareholders within three years of the
merger.
Full CGT rollover relief is expected to be available for St.George shareholders in
respect of the Westpac shares they would receive under the proposal.
The merger will be subject to various conditions including regulatory approvals
(including the Federal Treasurer, APRA and ACCC), approval by St.George
shareholders to change St.George’s constitution to allow Westpac to acquire more
than 10% of St.George’s shares and to implement the merger, and other customary
terms such as no material adverse change in either bank.

[ 本帖最后由 patricb 于 2008-5-13 10:54 编辑 ]

patricb

原帖由 loushenghong 于 2008-5-13 10:38 发表
I guess this move will make people lose jobs, especially those working in the back office.  Why would you have 2 accounting/reporting/compliance/administration teams if Two becomes One.

I believe that would happen down the track.

crizykitty

St. Gorge has already sacked lots of staffs since Mar. this year, and the redundancy is still in progress, so does Westpac.... These actions must be a preparation for the merge.

TheWayIam

St Westpac is the right name! hahaha~

休

原帖由 TheWayIam 于 2008-5-18 18:24 发表
St Westpac is the right name! hahaha~

是Westpac 吃 St George,肯定要Westpac 行头,Wesptac St.变街名了

TheWayIam

原帖由 休 于 2008-5-18 18:55 发表

是Westpac 吃 St George,肯定要Westpac 行头,Wesptac St.变街名了

不一定...说不定是West George? 哈哈哈~

估计最后合并后的银行名称还是Westpac, St George作为一个品牌保留, 就跟HBOS, RBS这些英国银行一样...