More than a month after Bank of Queensland launched its A$2.7 billion $2.2 billion takeover bid for Bank of Bendigo, the Victoria-based community bank has rejected the proposal. The merger would have brought together two smaller regional banks in Australia to create a larger bank with 575 branches and a capitalisation of around A$4.25 billion.
Under the proposal, Bendigo Bank shareholders were to receive 0.748 Bank of Queensland shares and A$5.50 for each of their Bendigo Bank shares. Based on MondayÆs closing of Bank of Queensland shares, the merger valued Bendigo BankÆs shares at A$19.60 a piece, representing a 48% premium to its share price before the takeover was launched on March 16.
¬ Haymarket Media Limited. All rights reserved.