takeover, page-8

HSBC have long been rumoured to have been interested in the NAB (both from within and outside of the Bank).

I first heard of an eventual (ie: possible) tie-up with HSBC as far back as 1997.

Despite its name, HSBC is a British based Bank.

HSBC could well be interested in either:
1)
the entire operations; or
2)
the British /European operations.

Either way, there is nothing to stop HSBC from coming onto the Share Register. It is only when the holding gets to 14.9% (if I recall correctly) that HSBC would then need to stop and then get permission to proceed further under 4-Pillars, National Interest, and /or FIRB.

More likely, if HSBC were to be interested (and this morning's AFR article implies a full on $50B takeover, valuing NAB at upwards of $33.20 (on a first tilt basis), they would look to either:
1)
take over the overseas' operations in a carve-up of the business (ie: UK /EU to HSBC, AU from HSBC to NAB, and ASIA new business to be the subject of a JV between HSBC and NAB) and establish a strategic shareholding (or 1-pillar) shareholding in NAB (this also solves any lingering Tier-1 capital problems that NAB might have);
2)
combine the Australian domestic operations together;
or
3)
establish a strategic relationship cemented in structure as well as in shareholdings (ie: HSBC in NAB, or each in the other).

Either way, I have long favoured an HSBC involvement in NAB.