SYDNEY, Oct 13 (Reuters) - Australian financial group Suncorp-Metway Ltd has scrapped plans to sell its banking and asset management divisions after receiving just one lowball offer, the Australian Financial Review said on Monday.
The paper, in an unsourced report, said Suncorp was reconsidering its plans after Commonwealth Bank of Australia <CBA.AX> (CBA) and National Australia Bank failed to lodge bids by Suncorp's Friday deadline.
A bid from Australia and New Zealand Banking Group Ltd <ANZ.AX> was believed to have been pitched below the value of Suncorp's net tangible assets, the paper added.
'It is understood ANZ's offer was by way of a scheme of arrangement, making it subject to a shareholder vote, and its valuation method would have been in line with CBA's A$2.1 billion ($1.4 billion) bid for BankWest, but well below broker valuations,' it said.
CBA last week announced a deal to buy troubled British bank HBOS's Australian operation, BankWest, and also said it had had exploratory talks with Suncorp.
That followed Suncorp saying it had received several approaches for its banking and wealth management operations.
Analysts have valued those operations at up to A$5 billion, but that was before last week's market turmoil slashed bank valuations. The paper cited industry sources as saying Suncorp's board had met on Sunday to discuss whether an Australian government assistance package to lenders might give it more scope to retain the banking division.
The credit crunch has sharply reduced Suncorp's access to financing. In August, it reported a 47.7 percent drop in year profit.
($1=A$1.49)
(Reporting by James Thornhill, editing by Mark Bendeich) . ng COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
The paper, in an unsourced report, said Suncorp was reconsidering its plans after Commonwealth Bank of Australia <CBA.AX> (CBA) and National Australia Bank failed to lodge bids by Suncorp's Friday deadline.
A bid from Australia and New Zealand Banking Group Ltd <ANZ.AX> was believed to have been pitched below the value of Suncorp's net tangible assets, the paper added.
'It is understood ANZ's offer was by way of a scheme of arrangement, making it subject to a shareholder vote, and its valuation method would have been in line with CBA's A$2.1 billion ($1.4 billion) bid for BankWest, but well below broker valuations,' it said.
CBA last week announced a deal to buy troubled British bank HBOS's Australian operation, BankWest, and also said it had had exploratory talks with Suncorp.
That followed Suncorp saying it had received several approaches for its banking and wealth management operations.
Analysts have valued those operations at up to A$5 billion, but that was before last week's market turmoil slashed bank valuations. The paper cited industry sources as saying Suncorp's board had met on Sunday to discuss whether an Australian government assistance package to lenders might give it more scope to retain the banking division.
The credit crunch has sharply reduced Suncorp's access to financing. In August, it reported a 47.7 percent drop in year profit.
($1=A$1.49)
(Reporting by James Thornhill, editing by Mark Bendeich) . ng COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.