OWN CORRESPONDENT, Bloemfontein | Thursday 5.00pm
STANDARD Bank Investment Corporation argued on Thursday that a R30-billion unsolicited bid from smaller competitor Nedcor should be judged in parallel by both South Africa’s Banks and Competition Acts.
Stanbic was arguing on the first day of its appeal in the Bloemfontein Appeal Court against a ruling by the Pretoria High Court on the merger. Last month, the Pretoria High Court supported Nedcor’s view that the bid, for which it needs regulatory approval before it can be launched, should only be judged under the Banks Act.
Ranked by market capitalisation, Stanbic, whose full name is Standard Bank Investment Corp, is South Africa’s second largest bank, while Nedcor is number three. Life insurance group Liberty Life is backing Stanbic, which is its controlling shareholder, in its attempt to thwart Nedcor’s all-paper offer. If Stanbic is taken over, Nedcor’s parent and Liberty’s biggest insurance rival, London-listed Old Mutual, would get a sizable stake in Liberty.
Nedcor is expected to argue its case later on Thursday or on Friday, when the two-day appeal ends. A decision on which regulator will have the final say on the bid’s future is expected within 10 to 14 days.
Shares in both banks shrugged off the court hearing, which is regarded as just another chapter in the protracted takeover battle since Nedcor first made public that it was interested in a marriage with Stanbic six months ago.
Shares in Nedcor, which has offered one of its stocks for 5.5 of Stanbic’s, dipped 80 cents to R134,80. Stanbic rose five cents to R26,25, making for a richer ratio than the Nedcor offer.– Reuters