Ascalon review has no bearing on bank merger

Review not out of the ordinary: Ascalon

By Kate Kachor
Wed 16 Jul 2008

St George and Kaplan's review of Ascalon is not out of the ordinary, according to the firm's head of investments.

The review of Ascalon Capital Managers (Ascalon) is not expected to have a bearing on the proposed merger between co-owner St George Bank and Westpac, the company's investment manager has said.

"With St George being a shareholder in Ascalon since inception once every 12 months they would do their regular reviews, so I wouldn't necessarily say that this is anything out of the ordinary," Ascalon Capital Management head of investments Nelson Lam told InvestorDaily.

"It's not going to impact the Westpac deal. It [the proposed merger] may bring the review a bit earlier."

Ascalon's co-owners St George and Kaplan Funds Management informed the market yesterday that they had approached Investec Bank to conduct a review of the boutique firm's operations.

"The review involves management and our input into that process is important. It is a coordinated process through Invetec so it's not a surprise to Ascalon," Lam said.

It is not clear whether St George and Kaplan plan to sell out of Ascalon completely, or only partially.

"It would not surprise me if the outcome of the review was to do nothing. That could be an outcome, you just don't know," Lam said.

"Maybe exit out of the business, grow the business or no outcome."

If St George and Kaplan did sell out of the group, the firm would survive, Lam said.

"I think the commitment from Ascalon's perspective to this boutique business is quite solid and what we've put together particularly with the recent investment forms a very strategic portfolio to any investor," he said.

In May this year, St George Bank agreed to an all-scrip merger proposal from Westpac Bank to create Australia's largest bank by value.

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