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Insurance industry

Australian Market Sees Record-Breaking Run, Commonwealth Bank Set to Unveil $8 Billion Plus Bid for Colonial

Strategic Insights

— 1 min read

The Australian market has continued its record-breaking run, with the market stretching its winning streak to five sessions. The strength in the resource, media, and telecommunications sectors offset concerns about falls on Wall Street, while Australian bond prices fell for the fifth consecutive time amid growing concern about the depreciation of the Australian dollar and further interest rate rises in the US. The Commonwealth Bank is expected to unveil an $8 billion plus bid for rival Colonial Ltd, which would be Australia's biggest corporate takeover bid.

Key Takeaways:

  • The Commonwealth Bank is set to launch an $8 billion plus bid for Colonial Ltd, creating the country's largest financial services company.
  • Business activity took a temporary breather in the March quarter but is expected to rebound quickly, according to a survey of business trends.
  • The Australian Democrats are pushing banks to establish an industry fund to subsidize unprofitable services to the bush.
  • Telstra Corp is restructing its management, with a major cost-cutting program aimed at slashing $1 billion from its operations.
  • The Seven Network recorded a higher-than-expected $101.7 million interim net profit and is considering a possible $150 million float of its mobile phone business.
  • Analysts believe the Commonwealth Bank's expected takeover bid for Colonial will only succeed if it is a friendly bid.
  • Share traders ignored Wall Street's lead and lifted the market to its fifth straight record close.

Statistics:

  • 81% of people believe Aboriginal reconciliation is important, according to a recent survey.
  • The Commonwealth Bank's anticipated takeover bid for Colonial will result in the creation of the country's largest financial services company.
  • Telstra is expected to cut its workforce by up to 10,000.
  • The Australian market has reached its fifth straight record close.
  • Australian bond prices fell for the fifth consecutive time.

Sources:

  • Sydney Morning Herald: "'Colonial shares surge amid speculation of Commonwealth Bank bid'", March 8
  • The Australian: "'Commonwealth Bank prepares to launch biggest corporate takeover in Australian history'", March 8
  • BRISBANE COURIER-MAIL: "'Pressure mounts on Aged Care Minister Bronwyn Bishop'", March 8
  • THE DAILY TELEGRAPH: "'Commonwealth Bank to launch $8 billion plus bid for Colonial'", March 8
  • Sydney Morning Herald: "'Seven Network profits shine, but Telstra turns off'", March 8
  • THE AGE: "'China's army of bachelors marching into a lonely future without women'", March 8

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