Sovereign next to go
Sovereign has issued a don't sell notice to shareholders fuelling further takeover rumours.
Thursday, October 8th 1998, 12:00AM
Financial services group Sovereign issued a "don't sell" notice to shareholders yesterday fuelling rumours ASB Bank's parent, Commonwealth Bank of Australia (CBA) is about to buy the business.Highly placed sources have confirmed that ABN Ambro in Australia has been offering Sovereign to other institutions.
Sovereign's brief notice advised shareholders not to deal with its company shares pending resolution of discussions which are taking place.
The notice pushed Sovereign's share price up 12 cents to $2.10.
For some time now there has been a rumour CBA is about to buy Sovereign, however, one the company's major shareholders and managing director Ian Hendry denied rumours he and founding shareholder Chris Coon were about to sell their remaining combined 22 per cent stake in firm.
CBA owns 75 per cent of the ASB Bank and 50 per cent of IPAC Australia.
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