Bendigo Bank ( BEN ) shares will be worth keeping an eye on in...

Bendigo Bank ( BEN ) shares will be worth keeping an eye on in the near future.

Bank of Queensland BOQ have withdrawn their takeover offer and say they are no longer interested.

This is after BOQ reportedly had further talks with BEN recently and offered more than the $17.92 original offer.

The BEN board refused the increased offer.

BEN share rose from ~$13.50 to their current price of~$16.40 on the basis of the BOQ original offer.

So where to now for BEN ?

Certainally they are now more on the radar of other potential suitors.

But it would be very difficult for anyone to take BEN over for anything less than $20 plus, as the opposition from the locals and the board to "their bank" being taken over would be huge.

But at some point money talks, and I would think the board and the locals would listen with interest to any such proposals in the mid $20s.

Foreign banks would also be viewed more favourably by the locals as they would need a head office in Australia and would be more likely to retain the head office in Bendigo city.

BEN is a huge employer in the city of Bendigo so any possible change of ownership and the implication for local jobs is of great concern.

The rumour is that there are a few suitors circling.

But even if nothing else happens, BEN continues in its own right from strength to strength.

I bought some recently, because while there is some possible downside, I believe it is limited.

And longer term they will go $20 plus anyway, with dividends along the way.

Interesting times.

Cheers

Bendigo