Takeover or merging with another bank

The share prices of Ben and Boq as well as Suncotp have been kept low, especially Bendigo and Adelaide Bank for a number of reasons , we all know but I would like to argue few point against the impact of fear campaign and market manipulation.

First of APRA has encouraged the banks to lend and support the economy and was happy to lower the threshold for common equity tier capital ratios, mind you the CET ratios for Bendigo and Adelaide is 9.8 percent.

There is no need for capital raise since the clever management saw the trouble in China, predicted the worst and raised $250m from institutional investors at $9.34 and additional $50m from retailers at $6.72.

The appointment of Mr David Foster who managed Suncorp for years and joined Bendigoand Adelaide Bank last year as non- executive Director would be instrumental in working towards merging with Suncorp or for Suncorp to take us over.

The last time the board of both companies discussed this was last year. There is also the chance of Bank of Queensland making a move. I guess time will tell.

My thoughts only