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Both major indices remained muted throughout morning trade and at midday, the S&P/ASX200 index was up by just four points, while the All Ordinaries added seven.
In the US stocks rose on Monday, led by the technology sector, as speculation mounted that Hewlett Packard is close to agreeing to a $13 billion buyout of Electronic Data Systems Corporation. Cooling oil prices also eased inflationary fears, and financial stocks gained on stronger-than–expected results from bond insurer MBIA.
At close of trade the Dow Jones Industrial Average was up by 130 points, while the tech-heavy Nasdaq surged 42.
In Asian trading today, Japan’s Nikkei was up 103 points at midday, while Hong Kong’s Hang Seng added 61.
On the ASX, Westpac Bank today confirmed that it has agreed to pay $18.6 billion dollars for smaller rival St George Bank, in a merger that will create Australia’s largest bank by market capitalisation.
The all-shares offer represents a 28.5 per cent premium to St George’s closing value on Friday, with Westpac offering 1.31 of its own shares for each St George share owned. St George said its board plans to recommend the offer to its shareholders, subject to independent expert advice.
The two organizations have agreed to a two-week exclusivity period, in which they will undertake reciprocal due diligence and negotiate terms. The merger will also require the approval of regulators, and of Treasurer Wayne Swan, to create a combined entity worth $66 billion.
Shares in St George surged by more than 26 per cent this morning when it resumed trading after yesterday’s halt.
In other market news, retailer Harvey Norman today reported sales of $1.78 billion for the four months to April 30, up 6.4 per cent on last year. However the retailer reported same-store sales growth of 2.5 per cent for the four months, down sharply from its 7.9 per cent figure for the previous quarter.
Shares in Harvey Norman, which have slumped more than 47 per cent this year on consumer spending worries, were flat at noon.
In other share price movements on the ASX this morning, resource stocks were mixed at midday. BHP Billiton was down 71 cents, Fortescue Metals added 23, Rio Tinto fell 96 cents, and Woodside Petroleum gained $1.37.
Banking stocks also gave a mixed picture of the market. At noon ANZ was down by a cent, Commonwealth Bank fell 71, National Australia Bank added 26 cents, while Westpac shares fell 74 cents as investors digested today’s takeover news.
Other blue chips mirrored the uncertain sentiment. At noon, AMP was up four cents, News Corp fell nine, Telstra slipped two cents, while retailer Woolworths added 27.
In the US stocks rose on Monday, led by the technology sector, as speculation mounted that Hewlett Packard is close to agreeing to a $13 billion buyout of Electronic Data Systems Corporation. Cooling oil prices also eased inflationary fears, and financial stocks gained on stronger-than–expected results from bond insurer MBIA.
At close of trade the Dow Jones Industrial Average was up by 130 points, while the tech-heavy Nasdaq surged 42.
In Asian trading today, Japan’s Nikkei was up 103 points at midday, while Hong Kong’s Hang Seng added 61.
On the ASX, Westpac Bank today confirmed that it has agreed to pay $18.6 billion dollars for smaller rival St George Bank, in a merger that will create Australia’s largest bank by market capitalisation.
The all-shares offer represents a 28.5 per cent premium to St George’s closing value on Friday, with Westpac offering 1.31 of its own shares for each St George share owned. St George said its board plans to recommend the offer to its shareholders, subject to independent expert advice.
The two organizations have agreed to a two-week exclusivity period, in which they will undertake reciprocal due diligence and negotiate terms. The merger will also require the approval of regulators, and of Treasurer Wayne Swan, to create a combined entity worth $66 billion.
Shares in St George surged by more than 26 per cent this morning when it resumed trading after yesterday’s halt.
In other market news, retailer Harvey Norman today reported sales of $1.78 billion for the four months to April 30, up 6.4 per cent on last year. However the retailer reported same-store sales growth of 2.5 per cent for the four months, down sharply from its 7.9 per cent figure for the previous quarter.
Shares in Harvey Norman, which have slumped more than 47 per cent this year on consumer spending worries, were flat at noon.
In other share price movements on the ASX this morning, resource stocks were mixed at midday. BHP Billiton was down 71 cents, Fortescue Metals added 23, Rio Tinto fell 96 cents, and Woodside Petroleum gained $1.37.
Banking stocks also gave a mixed picture of the market. At noon ANZ was down by a cent, Commonwealth Bank fell 71, National Australia Bank added 26 cents, while Westpac shares fell 74 cents as investors digested today’s takeover news.
Other blue chips mirrored the uncertain sentiment. At noon, AMP was up four cents, News Corp fell nine, Telstra slipped two cents, while retailer Woolworths added 27.
