Australia | Jul 12 2007
By Rudi Filapek-Vandyck
A takeover battle has emerged over Lonsdale Financial Group with Count Financial (COU) announcing today it has made a bid for the company after weeks of meetings and discussions between representatives from Lonsdale and DKN Financial Group (DKN).
DKN released a statement last week which stated it was in discussions about the possible acquisition of Lonsdale and Wrap Account Limited (WAL). Both are majority owned and 100% owned respectively by Zurich Financial Services Australia.
In addition, the statement said Zurich and DKN were also discussing a “strategic business relationship” which would see DKN promoting Zurich’s insurance and investment products to its network of advisers.
Today’s announcement by Count Financial does not give any indication about a possible offer price but it led to share prices for Count and DKN opening in opposite directions this morning.
Count shares took a short dive after the opening bell but have since recovered to $3.30, up 3c from yesterday’s closing price. DKN shares opened more than 1% higher and have held on to the price level: up 2c at $1.77.
The Australian financial services sector has seen a few deals coming to fruition over the past few months with stockbroker WilsonHTM giving up part of its share register to Deutsche Bank and with Lehman Brothers re-entering the market. Aspect Huntley is no longer independent either. Bank of Queensland’s (BOQ) approach to Bendigo Bank (BEN) however was politely put aside.
This process is likely to have further to go still. Our sources in the industry have told us that Broker One and Man Financial have picked up discussions where they previously left off. The expectation is now that an announcement could be made in September which would see the whole of Broker One becoming part of the Man Financial group.