QBE's hostile $8 billion takeover bid for IAG is about to heat up as other interested parties, including Zurich, start doing the numbers on the struggling insurer and the NRMA plays a key role in the outcome.
Zurich refused to comment on whether it was interested in IAG but confirmed that its chief executive, David Smith, was the former head of IAG New Zealand.
Other insurance companies, including AIG, are also believed to be taking a close look at IAG to see if the numbers stack up.
But the role of the NRMA cannot be underestimated, given that it owns about 3 per cent of IAG and NRMA members represent 60 per cent of IAG's shareholder base and 30 per cent of its value.
IAG began life by being spun out of NRMA in August 2000. Given that IAG's shareholder register is dominated by retail investors, the board will play a big role in the success or failure of a bid.
The NRMA has not yet decided what it will do with its shares, but whatever it does decide will send a strong message to 60 per cent of IAG's shareholder base.
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IAG Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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