Cicutto hoses down talk of AMP tilt
(11th November 2003 – Australia) National Bank chief executive Frank Cicutto has attempted to play down speculation that the bank is gearing up to make a bid for beleaguered financial services company AMP.
Cicutto issued a statement late Friday afternoon criticising AMP’s proposed de-merger of its Australian and UK businesses as it did not constitute a clean separation while AMP still retained 15 percent ownership of HHG plc.
He said there was "no clear justification for a de-merger" which retained significant linkages between the two 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," Cicutto said.
"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."
He went on to say that NAB would reluctantly support the proposed de-merger in the absence of a clean de-merger and would consider participation in the rights issue to prevent dilution of the bank’s strategic stake in the company.
Cicutto said the bank was prepared to hold a strategic position "for some time".
He said there was "no clear justification for a de-merger" which retained significant linkages between the two 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," Cicutto said.
"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."
He went on to say that NAB would reluctantly support the proposed de-merger in the absence of a clean de-merger and would consider participation in the rights issue to prevent dilution of the bank’s strategic stake in the company.
Cicutto said the bank was prepared to hold a strategic position "for some time".
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