exits amp, hhg, sgb, page-4

re: exits amp, hhg, sgb (nab comments) The AMP and HHG sales have been confirmed.

The SGB sale will occur in an overnight bookbuild.

This is what the NAB is saying about the exit from all 3 companies (with GSJB Were commentary):

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National focuses on strategic priorities

The National Australia Bank has sold its shareholdings in St George Bank, AMP Limited and HHG Plc.

The AMP and HHG shareholdings have been sold in block trades to Merrill Lynch. The St George shares are being sold in an overnight book-build which has been fully
underwritten by Merrill Lynch.
Final details of the sale will be announced following the completion of the book-build.

The Chief Executive Officer of the National, Mr Frank Cicutto, said an in-principle decision to dispose of the shareholdings subject to market conditions and final approval was made late last year.

“Current market conditions have facilitated the sale of the shareholdings at an attractive profit to the National,” he said.

“Going forward, our priorities will be further integrating our banking and wealth management businesses, developing our European business and rebuilding market
confidence in our risk management systems.”
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Goldman Sachs JB Were has since released the following preliminary views on the sale developments (including the capital pressure under which the NAB had placed itself - yet another negative for Frank Cicuitto):

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NAB
NAB has sold their interest in HHG, AMP and SGB st

27/01/04 17:25 James Freeman

NAB has sold their interest in HHG, AMP and SGB stakes. Whilst the price of the sale is yet to be disclosed we believe that capital released through these sales will be more then sufficient to offset the -10b.p.s lost from the FX trading losses. GSJBW view - We believe that this announcement concludes NAB near term interest in AMP and removes one of the negative factors that have been overhanging the stock. We do not expect that the capital released will be returned to shareholders in the near term. The need to raise capital immediately post the FX trading losses highlighting that the impact on capital from the FX trading losses, whilst maintaining the dividend at current levels, had caused pressure on the capital position i.e. one had to give, dividend or capital. We believe the resolution of the AMP is a positive for the stock, however the UK reinvestment still remains a major concern. Our underperform recommendation is under review.