The Abbott government is drawing up plans for a “root and branch” review of the financial system, with draft terms of reference to be released as soon as next month.
The review will deliver an interim report one year after it starts, with its final report coming in two years’ time and implementation during the second term of a Coalition government.
Community banking giant the Bendigo and Adelaide Bank has revealed it is looking at possible takeovers in a bid to lift its market share from 3% to 10%.
In an interview with the ABC’s Inside Business over the weekend, Bendigo Bank chief executive officer Mike Hirst revealed while a merger with the Bank of Queensland was now off the agenda, the bank is examining a number of smaller lenders.
“I think everybody is having to look at what the future holds and if there’s opportunities there for us, and it makes sense for us and it makes sense for the credit unions, we’ll certainly look to explore that,” Hirst says.
Warrnambool Cheese and Butter Factory (WCB) chief executive David Lord has conceded the Victorian dairy processor is “in play”, but describes a $320 million takeover bid by Bega as “inadequate”.
“Certainly, I think we’re in play. I think that’s a fair assessment of things and the board is focused on the best possible outcome for shareholders,” Lord says.
“We really believe that the Bega offer is inadequate in terms of not recognising the full value of the strategic nature, the unique nature of our assets and also the synergistic value of putting these two companies together.”
The Dow Jones Industrial Average is up to 15072.6. The Aussie dollar is up to US94.28 cents.
Andrew Sadauskas is a former journalist at SmartCompany and a former editor of TechCompany.
