Original article by Jonathan Shapiro
The Australian Financial Review – Page: 17 : 9-Apr-19
The Commonwealth Bank of Australia paid $11 billion for Colonial in 2000, but fund manager Merlon Capital Partners contends that the purchase wasted over $50 billion in shareholder capital. Merlon argues that the CBA’s purchase of Colonial did not create value for its stockholders, and that it demonstrates the need for shareholders to have a greater say about large acquisitions. Merlon has previously been critical of AMP’s 2018 decision to sell its life insurance business.
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COLONIAL LIMITED, MERLON CAPITAL PARTNERS PTY LTD, AMP LIMITED – ASX AMP