Skip to main content

Commonwealth Bank is selling an additional A$357 million of stock at A$28.37 apiece.

Commonwealth Bank of Australia, the nation’s biggest mortgage lender, was forced to sell shares at a steeper discount than planned after blaming Merrill Lynch & Co. for failing to tell investors about an increase in bad debts.

The Sydney-based lender turned to UBS AG to arrange the A$2 billion ($1.4 billion) sale, with A$1.65 billion selling for A$26 a share, it said in a statement. Commonwealth said it terminated an earlier agreement to sell the shares at A$27 via Merrill Lynch after the New York-based bank “did not inform potential investors of the various disclosures made by the Bank.”

“I’m unhappy that it happened but I’m still reserving judgment on who’s to blame,” said Peter Vann, who manages more than $600 million, including Commonwealth shares, at Constellation Capital Management Ltd. “Commonwealth hasn’t provisioned enough for their bad debts and among the big four banks they are in the bottom tier.”

 

Constellation was among investors approached by both Merrill and UBS for the sale, and declined to participate, he said.

Commonwealth Bank is selling an additional A$357 million of stock at A$28.37 apiece. The bank’s shares were halted from trading on the Australian stock exchange today. They last traded at A$29.15, having fallen 51 percent this year.

“Merrill Lynch was required to provide full disclosure to all potential investors before investors were required to commit,” Commonwealth said today in a statement.

Popular posts from this blog

Best Australian stock forums online ( finance forums)

Many traders and investors use forums to share ideas, learn from the more experienced, or simply to stave off boredom during long hours at the computer. Here we list the known universe of forums, complete with costs, member numbers, extra benefits and popular forum topics. Please post a message on Your 2 Cents if your favourite forum isn't listed here, or if you feel that there's more to add about the day-to-day goings on in your online community.Forum
Cost
Stock comps
Forum areas
Comments
AussieStockForums.comFreeASX by share code, General, Beginners, Derivatives, Commodities, International, Strategies/SystemsEasy to use, independent forum. Aussie Stock Forums has a group of very active and knowledgeable traders. Private messaging available. Australian forum.
Chimes in ExileFreeASX stocks, fundamental analysis, technical analysis, commodities, economics, investment tools The forum has a small group of regular contributors that form a genuine community of investor…

The diggers and dealers forum meet 2011

The diggers and dealers forum has just begun August 1. Its a three day annual event happening every year  at the WA country town of kalgoorlie.2011 Diggers & Dealers forumBig name brokers  keenly watching the event will be MacquarieDeutsche BankBell PotterGoldman SachsRBS MorgansEvans & PartnersHartleysBlack Swan Euroz.Well most other websites will give you the  finer details of the annual meet and greet that happens at kalgoorlie , so we will just stick with the bare minimum of details  and focus on the more enjoyable bits  of information that the dealers require to strike a good deal while in town.Bare detailsWebsite : Diggers & DealersEvents : Program and scheduleWatering holes and entertainment at Diggers and dealers forumPubs , clubs  and skimpy (barmaids) culture in kalgoorlie . There are about 25 pubs in Kalgoorlie-Boulder area and for a city that stretches just 67sq km the number of pubs makes for  a good choice on drinking holesand entertainmentExchange Hotel ( Pa…

List of Australian blue chip stocks

Australian shares gained 0.6 percent on Wednesday led by blue chip miners and financials on strong resource price


The biggest Blur chip stocks traded on the ASX, in terms of their market capitalisation, include:
BHP BillitonCommonwealth Bank of AustraliaTelstra CorporationRio TintoNational Australia BankAustralia and New Zealand Banking GroupRio tintoWestpac
The only stock to do worse than the S&P/ASX 200 is Harvey Norman Holdings Ltd [ASX: HVN]. Even so, it’s a better-than-the-bank 8.3% gain. The others have done much better: Qantas [ASX: QAN] up 36.1%; JB Hi-Fi [ASX: JBH] up 20.5%; Toll Holdings [ASX: TOL] up 25.3%; and Myer Holdings [ASX: MYR] up 37.1%. The benchmark S&P/ASX 200 index rose 27.1 points to trade at 4,977.3 by 2310 GMT. It fell 0.8 percent on Tuesday, its lowest close since February 7.