Danish bank buys stake in Australia's Tricom
MELBOURNE, May 5 (Reuters) - Danish investment bank Saxo Bank AS said it has agreed a deal to take a 35 percent stake in troubled Australian stockbroker Tricom Holdings Ltd from Babcock & Brown Ltd BNB.AX and Australia and New Zealand Banking Group Ltd (ANZ.AX).
Last month, investment bank Babcock & Brown Ltd and ANZ took part in a recapitalisation of Tricom, which failed to meet settlement obligations to the stock exchange in January.
They will both retain an equity interest in Tricom after the deal, Saxo Bank said in a statement.
Saxo said the deal was an important step in strengthening its position in Australian and New Zealand markets, and it has an option to increase its stake to 100 percent control within three years.
Under the agreement, which is subject to final due diligence, Tricom's business will be rebranded as Saxo Capital Markets Australia.
Since January, Tricom has been unwinding its margin lending book, which had grown to more than A$2 billion last June.
ANZ shares were up 1.8 percent and Babcock & Brown shares rose 3.1 percent, outpacing an increase of 0.7 percent in the broader market. ($1=A$1.07) (Reporting by Victoria Thieberger; Editing by James Thornhill)
