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AMP/Westpac allaicne shareholding in ANZ bank



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TREASURER

PRESS N O . RELEASE

EMBARGO

AMP/WESTPAC ALLIANCE SHAREHOLDING IN ANZ BANK

In April 19921 agreed to allow AMP and Westpac to facilitate their strategic alliance by providing the two institutions six months (to 15 October 1992) in which to reduce their aggregate beneficial shareholdings in other authorised banks to the 10 per cent level prescribed by the Banks (Shareholdings) Act.

The market has been aware of this deadline, especially in relation to the alliance's holding of ANZ stock. Recent press comment suggests that this may have been a factor in the weakening of the ANZ share price and perhaps bank shares more generally.

AMP/Westpac recently approached the Government for an extension of the 15 October 1992 deadline to reduce their shareholding in ANZ shares to 10 per cent.

Given market conditions, the Government has agreed to extend this deadline by twelve months.

In the interim, I have asked AMP and Westpac not to exercise their voting rights in respect of ANZ shares beneficially held by each party in excess of 5 per cent or, in the event that either shareholding should fall below 5 per cent, 10 per cent in aggregate.

On that basis, I will be recommending to the Governor-General in Council that Banks (Shareholding) Regulation number 7 be amended to give the alliance until 15 October 1993 to reduce its shareholding in ANZ to 10 per cent.

9 September 1992 COMMONWEALTH

PARLIAMENTARY LIBRARY M iCAH