Prudential to sell units in Australia, New Zealand

Article Abstract:

Prudential Corp. of the UK has decided to sell its life-insurance and fund-management units in New Zealand and Australia to Colonial Ltd. due to the competitive financial-services climate in the region. Prudential will receive 495 million sterling pounds or $800.7 million in cash from the sale. In addition, Prudential is expecting 200 million sterling pounds in pre-tax exceptional profits for 1998 from the transaction. An analyst in Australia disclosed that insurers are experiencing difficulties in differentiating themselves due to large banks which are cross-selling via established distribution systems.

Comment:

Has decided to sell its life-insurance and fund-management units in N Zealand and Australia to Colonial Ltd.

Australia, Life Insurance, Direct Life Insurance Carriers, New Zealand, Prudential Corporation PLC

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Hoechst seen lowering price for paints deal

Article Abstract:

Hoechst AG will decide on Oct. 23 , 1998, if it will accept Kohlberg Kravis Roberts & Co.'s (KKR) latest offer for its Herberts paints operations, an offer that is said to be lower than the three billion marks ($1.83 billion) KKR initially offered for the business in August 1998. The reduction in the offer, which is not expected to exceed 20%, is reflective of the current uncertainty in the world market. The new development comes in the wake of a profit warning on Oct. 12, 1998, that resulted in a 10%-decline in Hoechst's stock price to 57.8 marks when trading closed on Oct. 15, 1998.

Comment:

Will decide on 10/23/98, if it will accept Kohlberg Kravis Roberts & Co's latest offer for its Herberts paints operations

Paints & Allied Products, Paint and Coating Manufacturing, Coatings, Paints, Hoechst AG

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Commerzbank plan thrills market

Article Abstract:

Commerzbank AG, the fourth-largest bank in Germany, announced plans to sell as much as 25% of Comdirect, its direct-banking and online-brokerage operations. Industry analysts, who did not express surprise at the firms' IPO, have said that the sale of shares in Commerzbank's Comdirect unit is expected to earn about 17 billion marks or 18 billion marks. Comdirect's main rival, ConSors Discount broker, has a high market value with fewer customers than Comdirect.

Commercial Banks, Commercial Banking, Russia, Banking industry, Mergers, acquisitions and divestments, Commerzbank AG, Comdirect

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