ANZ may be in box seat for Suncorp

ANZ may be the bank in the best position, so far, to make a successful bid for the banking and wealth management businesses of Suncorp Metway. National Australia Bank and Commonwealth Bank are also evaluating their options.

The Suncorp plan appears to be demerge the general insurance business from the bank (which is the current holding company for the group) and thus make it feasible for a bidder to make an all-share offer. At this stage there's no talk of any cash component in any offer that may emerge from ANZ or another bank. This process also means that any change in ownership of Suncorp's banking business will be a drawn out affair.

Meanwhile CBA and HBOS may today confirm terms for the anticipated agreement for the purchase of Bank of Western Australia, which would be an all-cash offer. Any transaction appears likely to include the St Andrews insurance business as well.

Expectations that the sale agreement would be announced yesterday weren't fulfilled, and perhaps the alternative funding options available to Lloyds TSB (which is buying HBOS in Britain) through the Treasury are leading to re-evaluation by HBOS of the CBA offer.