NAB - AMP's proposed merger
07 November 2003 - 7:36PM
UK Regulatory
RNS Number:8042R
National Australia Bank Ld
07 November 2003
Group Corporate
Affairs
National Australia
Bank Limited
ABN 12004044937
500 Bourke Street
ASX Announcement Melbourne
Victoria 3000
Australia
Melbourne, Friday 7th November 2003
National comments on AMP's proposed de-merger
The National has reviewed AMP's Explanatory Memorandum and is now in a position
to respond to inquiries from shareholders, broking analysts and the media about
AMP's proposed de-merger, National Chief Executive and Managing Director, Mr
Cicutto said yesterday.
Mr Cicutto said AMP's proposed de-merger does not deliver a clean separation of
its Australian and UK businesses because AMP will retain 15 per cent ownership
of HHG plc.
"This de-merger proposal is different from the one announced by AMP in May", Mr
Cicutto said. "In our view, there is no clear justification for a de-merger
which retains significant linkages between its Australian and UK businesses.
"It is unclear what potential financial, regulatory and reputation risks and
other obligations AMP may face as a result of its continuing exposure to the UK.
Further, AMP may be required to increase its shareholding in HHG plc as
a consequence of the proposed #100 million convertible loan note standby
commitment."
Mr Cicutto said the National has always supported a clean de-merger. In the
absence of a clean de-merger, the National will reluctantly support the proposed
de-merger, and will consider participation in the rights issue to prevent
dilution of its strategic stake in the company.
"We are cautious and disciplined," Mr Cicutto said. "We have demonstrated
previously that we are prepared to hold a strategic position for some time."
For further information, please contact:
Brandon Phillips
Group Corporate Affairs
03 8641 3857
0419 369 058
or visit www.nabgroup.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
STRVDLBBXFBXFBL