Australia's ANZ bank says offer for E*Trade remains compelling |
|
|
|
Published
:
Fri, 23 Mar 2007 06:39
|
SYDNEY (XFN-ASIA) - Australia & New Zealand Banking Corp Ltd (ANZ) said its 4.05 aud a share offer for online broker E*Trade Australia Ltd remains compelling even though it falls below an independent expert's 4.22-4.74 aud valuation range.Australia's third largest bank said the valuation by Grant Samuel & Associates is unrealistic as it implies a premium of more than 60 pct above the earnings multiple for the only other listed Australian on-line broker and a similar premium to E*Trade shares only six months ago.ANZ added that its offer, which values E*Trade at 407 mln aud, provides certainty of cash at a price well above the target company's pre-bid share price and that in the absence of the offer, E*Trade shares are likely to trade below the offer price.It noted that the independent expert's report, released earlier today, states there appear to be limited prospects of a higher cash offer given ANZ's 34.2 pct shareholding in E*Trade.Grant Samuel also said the acquisition would give ANZ significant benefits and it is realistic to expect that ANZ may increase its offer price because of recent changes in E*Trade's share register.The independent expert noted that the target company's second largest shareholder, Caledonia Investments Pty Ltd, has acquired an additional 2.5 pct stake at an average acquisition price of 4.18 aud per share and now holds 11.97 pct.As well, stockbroking firm IWL Ltd has acquired a strategic holding and has stated that it does not presently intend to accept the offer.ANZ's bid closes on Apr 18.E*Trade shares closed up 0.13 aud or 3.11 pct at 4.31 aud.(1 usd = 1.24 aud)bruce.hextall@xrfn.com
|
|
|
|
|
|
|
| Stock
Quotes * |
|
NASDAQ
|
|
2792.28 |
22.57 (
0.81 %)
|
| SYMBOL (
2012-01-19 ) |
| LAST |
CHANGE
|
|
CARNIVAL
(
11:35am )
|
|
2017.00 |
46.00 (
2.42 %)
|
|
WHITBREAD
(
11:35am )
|
|
1662.99 |
33.99 (
2.09 %)
|
| SYMBOL (
2012-01-19 )
|
| LAST |
CHANGE
|
|
IBM
(
12:34pm ) |
|
181.50 |
0.43 (
0.24 %)
|
| SYMBOL (
2012-01-19 )
|
| LAST |
CHANGE
|
|
|
Print this Story
Airline Partners Australia gains 20.90 pct of Qantas Airways 