The sale of BankWest to the Commonwealth Bank of Australia is not expected to be impacted by the bailout of embattled parent company HBOS plc, which has accepted a $22 billion rescue package from the UK government.
British bank Lloyds TSB announced today it was taking over rival bank HBOS - the parent of Perth-based BankWest - in a 12.2 billion pound ($A28 billion) deal.
Credit ratings for BankWest parent HBOS have been downgraded in the wake of this week's US financial turmoil as analysts and investors grow increasingly nervous about the health of global financial institutions.
HBOS, the UK parent of BankWest, has reportedly confirmed it will axe 425 jobs and close one of its five mortgage brands to new business in order to cut costs.
Speculation over the sale of BankWest by its UK parent has ramped up with National Australia Bank Ltd reportedly in talks with JP Morgan and others over forming a consortium to break up HBOS.
HBOS, the UK owner of Perth-based BankWest, today said shareholders agreed to take up 8.29 per cent of its $8 billion rights issue, increasing speculation that Perth-based BankWest could be up for sale.
BankWest's parent company HBOS plc and other big British banks are facing uncertainty after a fall in HBOS's share price cast doubt over a massive £4 billion capital raising.
12 Jun 2008
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