Take-over talks boost Nedbank, Old Mutual
Johannesburg - Rumours that emerging markets bank Standard Chartered is poised to take over Nedbank boosted banking stocks on the JSE on Wednesday.
UK-based Sky News is reporting in an exclusive that Standard Chartered is plotting a multi-billion pound takeover of Nedbank [JSE:NED]. The news agency said that talks have apparently already started, although they are still at a relatively early stage.
In response, the two companies said they do not comment on market rumours.
"That rumour has been around for a while now. We don't comment on speculation and rumour. If it was something official then maybe we'd talk," said Don Bowden, investor relations consultant at Nedbank.
"That's market speculation and our policy is that we don't comment on market speculation," said a Standard Chartered South Africa spokesperson.
By 12:30 Nedbank was trading almost 3.5% higher at R139.75. Associate Old Mutual [JSE:OML] was 4.38% stronger at 1 312c.
The JSE's banks index was up 1.6% by noon.
- I-Net Bridge
Good for shareholders perhaps but not for customers who will suffer.
I'm not a market expert but If any deal was in the pipeline then Nedbank and Oldmutual would have issued a cautionary statement.
would that be, Doco?
Maybe the rumour is intended to boost the Nedbank and Old Mutual share price?
Standard Charter should leave nedabank alone or risk loosing a good reputation. nebank staff are rude and think they are the best meanwhile they know nothing!
This is old news. I think this is not on point. Standard Chartered and Nedbank entered into a partnership deal for certain markets in Africa. I think this is misleading a little bit but we'll wait and see.
On the other hand there is not smoke without fire
Will be interesting to see what happens to the share price if Nedbank found guilty of rogue trading SSF in Acc Ross by the SRP hearing.Articles in Noseweek and Sunday Times show they could have some heavy payouts.