UPDATE 2-Australia's CBA denies report of BankWest bid
(Adds analyst comments)
By Mette Fraende
SYDNEY, Oct 2 (Reuters) - Commonwealth Bank of Australia (CBA.AX) denied a media report on Thursday that it had offered to buy the BankWest business of British bank HBOS HBOS.L, though analysts believed the banks could be in talks.
The Australian Financial Review business daily reported that Australia's second-largest lender had offered as much as A$3 billion ($2.4 billion) for BankWest.
"Commonwealth Bank is aware of recent media speculation regarding the possible acquisition of BankWest. Commonwealth Bank regularly reviews acquisition opportunities but at this time confirms we do not have any offer with HBOS Plc to acquire BankWest," it said in a statement.
Analysts said however they believed CBA was keen to acquire in the current environment.
"I think they are definitely doing the works. I have no doubt they are looking at it. The question is how desperate HBOS is," said a banking analyst who asked not to be identified due to company policy.
"They (Commonwealth) have got the firepower to do something, and senior management is aware they've got the firepower to do something," the analyst said.
Without citing sources, the newspaper said the offer was below the level that HBOS, the subject of a UK government-backed takeover offer from fellow British bank Lloyds TSB LLOYD.L, was willing to sell for.
Media reports in August had said CBA may offer over A$6 billion for BankWest, but valuations since then have been hammered by a string of high profile bank collapses caused by the credit crisis.
Australia and New Zealand Banking Group (ANZ.AX) and National Australia Bank (NAB.AX) were also interested in BankWest, the paper said.
An ANZ spokeswoman said the bank, Australia's third largest, did not comment on speculation. NAB declined to comment.
Analysts believed the most likely acquirer would be Commonwealth.
"ANZ and NAB have lost investor credibility, so it would definitely be harder for them," Rohan Walsh, investment manager at Karara Capital said.
He added Commonwealth was in the best position to acquire BankWest, but would need to raise equity to do it given the bank's share price. ($1=A$1.27) (Editing by Jonathan Standing)
