Takeover Rumours Swirl Around Anz

Takeover rumours again surrounded Australia and New Zealand Banking Group Ltd (ANZ) on Thursday as the banks share price rose sharply in early trade. At 11.15 a.m. (0115 GMT), ANZ shares were 58 cents or 6.29 per cent up at A$9.80. Earlier it hit a record high of A$10.

There are stories going around that the FIRB (Foreign Investment Review Board) has given approval to somebody to take them over and that would be announced shortly, said one broker. He said the banks touted as potential suitors for ANZ are Dutch-bank Internationale Nederlanden Groep NV and National Westminister Bank Plc.

The takeover valuation is about A$11.44 and at A$10 it is seeing a lot of sellers rapidly, said the Melbourne-based broker. The broker said if there is a ANZ takeover it may increase the valuation of the other major Australian banks. Its the old rumour about a foreign takeover again but I notice that there are plenty of investors happy to sell into the rally, said a dealer from Daiwa Securities.

The recent Wallis inquiry finance sector review recommended that foreign banks could takeover one of Australias big four banks, which has underpinned the latest rumours about ANZ and another big four bank, Westpac Banking Corp.

ANZ said in response to a query from the Australian Stock Exchange that it knew of no reason for the share price move.