There’s a great story in the Australian Financial Review on the government’s upcoming float of Medibank Private, with the big wigs from several Australian investment banks in Canberra on Thursday for pitch meetings.
There’s a hilarious anecdote, with a cab driver claiming his car load of bankers told him to take a lap around the block, so they wouldn’t run into the competition leaving the Department of Finance building. And Macquarie’s team, according to the Fin, all arrived in pinstripe suits with matching red umbrellas.
According to the report there were teams from the big banks including CBA (who arrived with their lobbyist), Macquarie Group, Goldman Sachs, Credit Suisse and Bank of America Merrill Lynch, all in for meetings.
The float could be worth $4 billion, though it is reputation, as well as profit, which has got the bankers trying to out-pitch each other.
Government floats can get bogged down with bureaucracy, and the fees are lower. though besides the fact its just a good look, from a marketing perspective, it would also slingshot the players involved a few spots up the league tables.
A plan to float the healthcare business was announced in March by Finance Minister Matthias Cormann, who said a scoping study had recommended the public sale — the government’s first privatisation.
“The independently-prepared scoping study reaffirmed our long-held view that there is no compelling reason for the Government to own Medibank Private,” he said. “We are able to proceed the initial public offering in 2014-15.”
You can read more at the Fin.