All eyes on Australian banking sector

Press, 2 May 1981, Page 18

All eyes on Australian banking sector

All eyes were on the banking sector on the Australian sharemarket yesterday as traders speculated on the outcome of the CBA’s announcement that it had received a merger proposal from an unnamed 'bank, widely rumoured to be the ANZ. CBA shares finished 110 c higher at 450 c after a few shareholders were coaxed to • disregard the directors “don’t • j sell” advice about a half' i hour before the close.’ : However, traders were hesitant to make a commit'

ment pending further notice from CBA and only 16,900 shares traded nationally. The ANZ emerged as a front-runner when its shares dropped 20c to 450 c at the opening, on rumours that the bid would involve a one-for-one share swap which would < dilute the holdings of ANZ ; shareholders. Meanwhile, the CBC bank - J rose 25c to 430 c oh specula* J tion that it would be forced: J to: seek a partner-rather than be. relegated" to the junior, ■ - ranks of the banking system <

it the CBA merger goes through. The Wales and the National, neither of which was discounted as possible suitors for the CBA, were little changed on the day. The Wales slipped 4c to 328 c and the National rose 2c at 330 c. Elsewhere. BHP was 10c stronger at $14.25, CSR eased--2c vtot ' 7ooc, Woodside was steady?; at I .228 c Santos. ;retreated l6e tb 624 c, and WoolwoW.was a