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Nedbank surges on HSBC rumours

Jul 08 2010 11:47

Company Data

Nedbank [JSE : NED]

Last traded R158.90
Change R1.50
% Change 0.95%
Cumulative volume 410,042
Market cap R80.63bn

Last Updated: 13/02/2012 at 17:42. Prices are delayed by 15 minutes. Source: McGregor BFA

 

Oldmutual [JSE : OML]

Last traded R19.23
Change R0.32
% Change 1.69%
Cumulative volume 6.05m
Market cap R106.96bn

Last Updated: 13/02/2012 at 17:42. Prices are delayed by 15 minutes. Source: McGregor BFA

 

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Johannesburg - Shares in Nedbank Group [JSE:NED] jumped more than 3% on Thursday, following a Sky News report which linked the financial services firm to a takeover by Europe's biggest bank HSBC Holdings.

At 11:26 Nedbank was trading at R131.90, up 478c (3.7%) from Wednesday's closing price of R127.12.

Earlier on Thursday, Sky News reported HSBC is in the early stage of evaluating a bid for Nedbank.

HSBC has appointed investment bank Lazard to advise on a possible takeover deal, which would cost several billions of pounds, Sky said.

However, insurer Old Mutual [JSE:OML], which owns about 54% of Nedbank, is not in talks with potential buyers at the moment, Sky said.

Officials for HSBC, Nedbank, Lazard and Old Mutual all declined to comment.

A source familiar with the matter told Reuters in May that Britain's Standard Chartered was interested in buying Old Mutual's stake in Nedbank.

For HSBC, buying a majority stake of South Africa's fourth-largest bank would bulk up its presence in Africa's biggest economy and give it a strong platform for expansion on the fast-growing continent.

Old Mutual has been under pressure from some investors to review its sprawling structure after a strategic overhaul in March included the planned sale of its US life insurance unit, but disappointed hopes of a more far-reaching shake-up.

Africa is increasingly seen as an attractive investment destination, thanks to abundant resources and rising personal incomes.

 - Reuters & Fin24.com

 

 
 
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