Emerging markets focused bank Standard Chartered is in talks to buy South African bank Nedbank, Sky television reported on Wednesday, in a potential $10 billion deal.
Buying Nedbank would bulk up Standard Chartered's presence in Africa's biggest economy, which is increasingly seen as a gateway into the fast-growing continent. It is one of the country's top four banks. Nedbank shares rose 3.5 per cent and Standard Chartered fell 2.3 per cent by 0840 GMT. Old Mutual, which owns a majority stake in Nedbank, gained 4 per cent in London, where the shares traded ex-dividend, and were up 6 per cent in Johannesburg. Sky said talks had taken place between Standard Chartered and Nedbank, although they were at a relatively early stage. It said Goldman Sachs was advising Standard Chartered. The South African government could be a stumbling block to any transaction, although Standard Chartered CEO Peter Sands was keen to pursue a takeover, Sky said, citing people close to the discussions. Standard Chartered, Nedbank and Goldman Sachs declined to comment. Old Mutual, which owns a 55 per cent stake, said it had nothing to add to a strategy update given in March, when it unveiled a strategic overhaul that disappointed investors who had hoped for a more far-reaching shake-up. The company has faced calls to refocus on insurance by selling its Nedbank stake. Nedbank's market value is just over $10 billion. This month, it forecast better 2010 earnings, helped by a rise in first-quarter fees and commissions. Standard Chartered, based in London but deriving over four-fifths of its profits from Asia, last week said it made record first-quarter earnings. Sands has steered the bank through the financial crisis relatively unscathed, underpinned by its reliance on Asia and traditionally decent capital and liquidity. Source: Reuters -- Thanks & Regards, Abhishek Kothari -- You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en.
