We are given to understand by the highly paid analyst's that SGB...

We are given to understand by the highly paid analyst's that SGB is a potential takeover target by one of the "big 4", particularly NAB which owns a good chunk of them.

But just look at the facts: they are trading at a price/nta of about 5.70 - I cannot recall any banking takeover at such multiples (here or overseas).

Even a bid at the current market price of SGB would entail a goodwill write-off of some $8 billion dollars (out of total market cap. for SGB of around $9.8 bio)

P/E is around 20, again over the top for the banking sector, both historic and present. By either domestic or international measures.

I really don't believe any one of the big 4 are so desperate for market share that shareholders would approve a takeover of SGB at these unrealistic ratios.

Any other thoughts out there?