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Rand at 3-month high on Nedbank talks

Jul 26 2010 15:22 Reuters & David van Rooyen

Company Data

Oldmutual [JSE : OML]

Last traded R18.75
Change R0.01
% Change 0.05%
Cumulative volume 5.42m
Market cap R91.33bn

Last Updated: 28/05/2012 at 17:43. Prices are delayed by 15 minutes. Source: McGregor BFA

 

Nedbank [JSE : NED]

Last traded R167.57
Change R-0.77
% Change -0.46%
Cumulative volume 149,153
Market cap R85.04bn

Last Updated: 28/05/2012 at 17:43. Prices are delayed by 15 minutes. Source: McGregor BFA

 

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Johannesburg - South Africa's rand firmed to a new three-month high against the dollar on Monday partly on talks of a possible takeover of local bank Nedbank Group [JSE:NED] by HSBC or Standard Chartered.

The rand was trading at 7.3690 against the dollar at 14:47, 0.75% stronger than New York's Friday close of 7.4250.

On Friday, Financial Times of London (FT) columnist Mark Kleinman reported the two British banking groups have already had talks with Old Mutual [JSE:OML] over the latter's 52% stake in Nedbank.

This is the third time this year that this speculation has been doing the rounds in London. It is well known that both banks want to expand their presence in emerging markets.

In May Sky News reported that Standard Chartered was interested in Nedbank, and shortly after that the same source reported HSBC was putting out feelers for Nedbank.

In both cases Nedbank neither denied nor confirmed the reports.

John Bestbier, Nedbank group CEO for strategy, then said that over the years Nedbank had become accustomed to the rumours, and that the bank would not respond to market speculation.

But now Kleinman has reported that these talks have passed the exploratory stages.

It is also alleged that Old Mutual CEO Julian Roberts has called in a team of advisors to help find buyers for the group's stake in Nedbank.

However, several issues need to be ironed out first before a transaction could proceed - including whether local authorities would approve another foreign bank takeover.

At 15:04, Nedbank shares were trading higher 0.32% at R137.70.

 - Fin24.com


 
 
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