BT Funds Management Deal Unravels as ANZ and NAB Pull Out

The sale of BT Funds Management appears to be in disarray, with two of the short-listed bidders, ANZ Bank and National Australia Bank, deciding not to make a final offer for the $2 billion-plus deal. This move follows concerns over the asking price and the need to take on the beleaguered BT Investment Bank. The situation has sparked a re-evaluation of the bid prices, with some predicting that the value of BT Investment Bank could be as high as $1.9 billion. Meanwhile, Westpac has emerged as a new contender, making a "cheeky" bid for BT.

Key Takeaways:

• ANZ Bank and National Australia Bank have withdrawn from the BT Funds Management bid, citing concerns over the asking price and the need to take on BT Investment Bank.
• The sale of BT Investment Bank is expected to be packaged with the sale of BT Funds Management, with Deutsche Bank aiming to take over $100 million off the funds management price to pay for shutting down the BT Investment Bank.
• The asking price for BT Funds Management has been revised down from $2.5 billion to $2 billion.
• Westpac has emerged as a new contender in the bidding process, making a "cheeky" bid for BT.
• The value of BT Investment Bank is predicted to be as high as $1.9 billion.
• ANZ has decided to wait 12 months before making a capital return, while National is considering acquisitions in Britain and the US.

Statistics:

• The asking price for BT Funds Management has been revised down from $2.5 billion to $2 billion.
• The value of BT Investment Bank is predicted to be as high as $1.9 billion.
• ANZ and National have withdrawn from the bidding process, leaving over $3 billion burning in their combined pockets.

Sources:

• "US-based Principal Group firms as favourite for BT Funds Management", The Australian Financial Review, no date provided
• Bank sources, as cited in the article
• "BT's decision to sell off BT Investment Bank was a timely one, experts say", no date provided