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Westpac agrees bid for St George after due diligence

Sun May 25, 2008 11:58pm EDT

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SYDNEY, May 26 (Reuters) - Westpac Banking Corp Ltd (WBC.AX) has agreed to go ahead with its roughly A$16.6 billion ($16 billion) bid for St George Bank SGB.AX, the biggest banking takeover in Australia, after completing due diligence, St George said on Monday.

The two banks have signed a merger implementation agreement on the same terms as previously announced: 1.31 Westpac shares for every St George share. The two banks also extended the exclusivity period but St George is free to consider any "superior proposals which may emerge".

The combined entity would have a market capitalisation of around A$66 billion, overtaking Commonwealth Bank of Australia's (CBA.AX) A$61 billion. It would rank second to National Australia Bank (NAB.AX) by asset value. (Reporting by Miranda Maxwell)



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