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At midday, the S&P/ASX200 index was up 33 points, while the All Ordinaries added 28
US stocks fell on Friday as the world’s largest insurer American International Group reported massive losses linked to sub-prime lending. AIG told investors it plans to raise up to US$12.5 billion as it struggles to stem losses.
At Friday’s close, the Dow Jones Industrial Average had slipped 120 points, while the Nasdaq composite fell five.
In Asian trading today, Japan’s Nikkei was down 23 points at midday, while Hong Kong’s Hang Seng was closed for a public holiday.
Meanwhile dominating headlines on the ASX this morning is the news that Westpac Banking Corporation has approached rival lender St George with a takeover offer that analysts think could be worth about $20 billion.
If successful, the merger would create Australia’s largest financial services firm with a market capitalisation of over $60 billion.
Westpac said the all-equity takeover would create a strong combined entity, which would be better able to compete with larger rivals Commonwealth Bank, ANZ and NAB.
St George Bank has acknowledged the approach and is expected to make further comment before start of trade tomorrow. Shares in both banks have been placed in a trading halt today to allow the confidential merger discussions to continue.
In other market news steel maker BlueScope today reiterated that it expects stronger second half results on solid steel demand and higher prices, but cautioned that the rising Australian dollar will impact export earnings.
Energy giant AGL today also reiterated its forecast, saying that it expects full year net profit to range between $330 and $360 million, in line with its October estimate.
Finally, beleaguered shopping centre owner Centro Properties Group said today it will vigorously defend the class action claim filed against it, and its managed trust Centro Retail, on Friday.
Investors who bought shares in the group, and the trust, in the six months prior to February claim they were mislead by Centro, who they say breached continuous disclosure obligations.
Finally, in ASX share price movements today, resource stocks mostly lost ground. At midday, BHP Billiton was down 27 cents, Fortescue Metals added 13, Rio Tinto and Woodside Petroleum both slipped 43 cents.
Banking stocks went the other way. At noon ANZ was up 65 cents, Commonwealth Bank added $1.55, and National Australia Bank put on $1.76. Westpac remains in a trading halt following today’s announcement.
Other blue chips were mixed. At noon, AMP was up 36, News Corp fell 36 cents, while Telstra and Woolworths both dropped 5 cents.
US stocks fell on Friday as the world’s largest insurer American International Group reported massive losses linked to sub-prime lending. AIG told investors it plans to raise up to US$12.5 billion as it struggles to stem losses.
At Friday’s close, the Dow Jones Industrial Average had slipped 120 points, while the Nasdaq composite fell five.
In Asian trading today, Japan’s Nikkei was down 23 points at midday, while Hong Kong’s Hang Seng was closed for a public holiday.
Meanwhile dominating headlines on the ASX this morning is the news that Westpac Banking Corporation has approached rival lender St George with a takeover offer that analysts think could be worth about $20 billion.
If successful, the merger would create Australia’s largest financial services firm with a market capitalisation of over $60 billion.
Westpac said the all-equity takeover would create a strong combined entity, which would be better able to compete with larger rivals Commonwealth Bank, ANZ and NAB.
St George Bank has acknowledged the approach and is expected to make further comment before start of trade tomorrow. Shares in both banks have been placed in a trading halt today to allow the confidential merger discussions to continue.
In other market news steel maker BlueScope today reiterated that it expects stronger second half results on solid steel demand and higher prices, but cautioned that the rising Australian dollar will impact export earnings.
Energy giant AGL today also reiterated its forecast, saying that it expects full year net profit to range between $330 and $360 million, in line with its October estimate.
Finally, beleaguered shopping centre owner Centro Properties Group said today it will vigorously defend the class action claim filed against it, and its managed trust Centro Retail, on Friday.
Investors who bought shares in the group, and the trust, in the six months prior to February claim they were mislead by Centro, who they say breached continuous disclosure obligations.
Finally, in ASX share price movements today, resource stocks mostly lost ground. At midday, BHP Billiton was down 27 cents, Fortescue Metals added 13, Rio Tinto and Woodside Petroleum both slipped 43 cents.
Banking stocks went the other way. At noon ANZ was up 65 cents, Commonwealth Bank added $1.55, and National Australia Bank put on $1.76. Westpac remains in a trading halt following today’s announcement.
Other blue chips were mixed. At noon, AMP was up 36, News Corp fell 36 cents, while Telstra and Woolworths both dropped 5 cents.
