Shares in FirstRand were up more than three percent in early trade on Tuesday on rumours that it could be a possible takeover target by the world’s largest bank, United States group Citigroup.
At 10.10am, the group’s shares were up 3,30% or 47 cents to R14,70 a
share on the rumours.
While neither side could confirm the speculation, Business Day, in a front page report, said Citibank had again emerged as the next possible foreign bank to buy a local bank, with First National Bank — FirstRand’s banking division — as its likely target.
FirstRand is on record as saying it is open to talks with any international bank, and will consider any proposal that made good business sense. And, according to the report, Citibank is rumoured to have “visited” local banks last year.
Prior to giving the nod to United Kingdom banking group Barclay’s takeover of local group Absa, both Finance Minister Trevor Manuel and South African Reserve Bank Governor Tito Mboweni intimated that they might entertain the notion of a second foreign bank gaining control of a local one, but stressed that it each case would be treated on merit and would have to tie in with the country’s four-pillar policy of having four major banks. – I-Net Bridge