CBA likely to bid for Colonial
ASB Bank's parent company, Commonwealth Bank of Australia, is expected to make a A$9 billion friendly takeover bid for Colonial in the next few da.
Wednesday, March 8th 2000, 12:00AM
Colonial asked the Stcok Exchange to suspend trading in its shares late yesterday, saying it is currently "in certain negotiations, which maybe material to the share price, but which have not yet reached a point where disclosure is required."
If the takeover is successful it is likely to trigger further round of rationalisation in the financial services industry. This time round the rationalisation will be amongst the big players as opposed to the smaller and mid-sized firms.
CBA is expected to offer Colonial shareholders between A$8.50 and A$9 a share in a scrip-for-scrip deal.
The deal will require approval from at least 75 per cent of its shareholders.
Colonial is the one financial services firm which has continued to have a buoyant share price over the past year.
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