Latest / Best of Business / Claire Matthews: Massey University Head of Accounting and Finance on Kiwibank pushing to stop TSB-Heartland merger

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Claire Matthews: Massey University Head of Accounting and Finance on Kiwibank pushing to stop TSB-Heartland merger · Best of Business

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  Speaker 1: You're listening to a podcast from News Talk st B.
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  Speaker 2: Kiwibank is making an eleventh hour bid to take TSB
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  Speaker 2: Bank off Heartland Bank tesB and Heartland A due to merge.
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  Speaker 2: It's been cleared by a High Court decision this morning,
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  Speaker 2: but Kiwibank's parent company is now piped up saying its offerer.
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  Speaker 2: Superior Professor Clare Matthews is the head of the School
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  Speaker 2: of Accountancy, Economics and Finance at Massi University and with
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  Speaker 2: US High Claire Cure Heather, why do you think Kywebank
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  Speaker 2: is suddenly so interested?
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  Speaker 3: Well, I guess I'm just looking for an opportunity to grow,
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  Speaker 3: and this is a way to grow buy quite a
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  Speaker 3: large amount and sort of overnight. Basically. Yeah.
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  Speaker 2: It sounds also like the price is just better than
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  Speaker 2: the price that anticipated.
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  Speaker 3: Is it about roy Oll? That's possible. We don't know
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  Speaker 3: whether they were involved in initial discussions. Toy Foundation have
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  Speaker 3: indicated that they did have other discussions, but haven't said
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  Speaker 3: with home before they accepted the Heartland offer, and Kiwibanks
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  Speaker 3: or the Kiwi Capital Group's definition of or description of
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  Speaker 3: their offer is superior as very much their opinion. It
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  Speaker 3: doesn't necessarily mean toy Foundation and Greece.
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  Speaker 2: What isn't it apart from growing? Is there anything in
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  Speaker 2: particular in that customer base that Kiwibank wants.
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  Speaker 3: I can't see anything specific that Kiwibank wants from Hartland's perspective.
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  Speaker 3: I can see why they want it because it's a
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  Speaker 3: complementary to a product offering to what they offer. For Kiwibank,
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  Speaker 3: it's really just more of what they're already offering, and
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  Speaker 3: it's just concentrated in a particular part of the country,
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  Speaker 3: So it's not obvious why it would be particularly attractive. Now.
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  Speaker 2: I mean, these two banks read the merger, have gone
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  Speaker 2: through quite a bit of kerfuffle, haven't they. They've obviously
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  Speaker 2: pretty far down the chat between themselves and now they've
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  Speaker 2: had to go to the court and defend their case.
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  Speaker 2: Can you see it shifting to Kiwibank.
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  Speaker 3: It really does depend on the offer and whether there
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  Speaker 3: was an offer from ki Bank additionally, and how toy
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  Speaker 3: Foundation judges that offer. So without any information about the
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  Speaker 3: Kiwi Bank offer, which is reasonable for us not to
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  Speaker 3: have that at the moment because it's commercially sensitive. It's
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  Speaker 3: really hard to judge, and it's not clear what the
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  Speaker 3: foundation is looking for and what the advantages might be.
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  Speaker 3: I think one of the things that seems to have
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  Speaker 3: been overlooked, and I noticed Martin Lubrick from Victoria has
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  Speaker 3: made the point what's overlooked is the fact that what's
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  Speaker 3: being proposed now by Kiwi Capital Group is a takeover
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  Speaker 3: by a government owned bank, and that's quite different to
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  Speaker 3: a private owned institution, and I think that actually has
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  Speaker 3: an impact. So it's not just about the money side
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  Speaker 3: of things. Maybe financially they've got a better offer, but
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  Speaker 3: does Toy want to sell to a prior, you know,
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  Speaker 3: to a government owned institution and have the issues that
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  Speaker 3: come with government ownership which they wouldn't encounter with Heartland.
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  Speaker 2: Claire, thanks very much, appreciate your time. Claire Matthews. Prefer
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  Speaker 2: to Clare Matthew's banking expert at Massi University
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