CBA Rejects Takeover Reports of IAG

Submitted by Stock Market News on 17 June, 2011 - 11:46

Commonwealth Bank of Australia (ASX:CBA) rejected reports that its interested in buying Insurance Australia Group to expand its insurance division. According to reports from Fairfax newspapers, CBA CEO Ralph Norris met with former NRMA director Richard Talbot about a possible takeover. A $7 billion deal is under consideration but no formal talks had been set.

CBA shot down the deal in a statement with ASX yesterday. "The CBA wishes to clarify that contrary to the implications contained in media reports it has no current interests, nor has it ever had any interest, in acquiring IAG," it said.

However Talbot did mention that Norris said CBA had examined IAG. "I have met with Ralph Norris and he has told me that had a look at it (IAG) at $3.40 but they did not feel there was value for them at the price," he said.