Skip to content
31 May 2016
Speculation continues on Wesfarmers making a takeover tilt at Insurance Australia Group (IAG).
In the past week IAG’s share price has shot up 10.5% to $3.13 today, but this is still well down on the $3.60 the insurer was commanding six months ago.
This has not stopped speculation that IAG would make a perfect fit for Wesfarmers if it wanted to expand its insurance division.
Both companies have denied there are any takeover talks, but that hasn’t stopped the market speculating.
Large fund managers dominate IAG’s share register and the National Australia Bank holds a 5% stake.
The institutional investors own almost 60% of IAG shares, with “mums and dads” (shareholders with less than 5000 shares) owning about 36% of the company.
While many fund managers will be looking for a quick profit and some mums and dads may have grown tired of waiting for the share price to rebound to pre-financial crisis levels, the big question is, what price are they looking for?
And would a cash and scrip offer from Wesfarmers be enough to tempt them to sell? This is especially important to the many institutional investors who already have the WA conglomerate in their portfolios.
The speculators pushing the IAG-Wesfarmers rumour also seem to have ignored Wesfarmers’ debt, which at June 30 stood at $4.3 billion.
A takeover of IAG, tipped at costing about $7 billion, would probably push debt out further at a time when banks are being more cautious on lending and increasing the cost of money.
But these are volatile times and the stockmarket is looking for some positive action to lift the pervading gloom.
Perhaps a Wesfarmers tilt at IAG might have something to do with what the stockmarket really wants in its Christmas stocking this year.
30 May 2016
Brilliant opportunity for a corporate Assistant Broker/Account Executive ready to step up to a more diverse role. Great team culture & scope to progress.
26 May 2016
We currently have a fantastic opportunity for an experienced Insurance Broker/Account Executive within the home & contents insurance space
26 May 2016
Fantastic 12 month Claims Administrator role - ideal opportunity to progress your career in insurance
18 May 2016
2 great roles available with a successful & growing national company, great team environment, ongoing training & progression opportunities.
13 May 2016
• A challenging, varied and rewarding position • Part of a nationwide group of brokers • Extensive assistance with compliance and other back office functions, leaving you free to focus on serving clients
11 May 2016
Key national strategic role reporting to the CEO. Manage and grow existing facilities/schemes, seek out new opportunities. Sydney CBD.