After Commonwealth Bank of Australia withdrew last week from talks to buy the Royal Bank of Scotland's Australian unit, it now reportedly has its eyes on another British bank's Australian unit. According to The Australian, CBA may offer of up to A$7 billion ($6 billion) for HBOS plc's BankWest unit.
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The English bank, facing trouble from bad mortgages, may be eager to deal BankWest since it announced last week that its profits were cut in half due to a £1.1 billion write-down of debt securities.
Meanwhile, Morgan Stanley is advising HBOS on its future options for BankWest, which is worth A$5 billion to A$7 billion, according to The Australian citing banking sources.
Reuters says that Commonwealth Bank, the country's second largest bank by assets, will have few domestic competitors for BankWest because rivals National Australia Bank Ltd. and New Zealand Banking Group Ltd. are struggling with problems attributed to the global credit crisis. Meanwhile, Westpac Banking Corp. is closing a deal for its planned A$16.9 billion acquisition of St. George Bank Ltd. -- Gerald Magpily
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Comments
The collaterized debt obligation or bad mortgages issues due to unprudently banking practices will still in the questionable another 500 billions USD in the market.
HBOS is one of the largesr bank is operated by unfit and improper management system and poor corporate governance as well.
Revamping of Andy Hornby leadership will valuable ,he is unfit to run the banking business.