CBA stock price surges amid takeover rumours
Image source: Getty Images
That Commonwealth Bank of Australia (ASX:CBA) stock price up 0.5% in morning trade.
CBA shares closed at $94.46 yesterday and are currently trading at $94.93 a share.
After a sharp sell off yesterday it’s a good day for the markets overall S&P/ASX 200 Index (ASX:XJO) up 0.3% at the time of writing. And the big financials are doing better, as evidenced by the 0.6% gain S&P/ASX 200 financial index (ASX:XFJ).
This is the latest price action for you.
So what’s up with a potential takeover?
What takeover rumors are circulating?
In news that is unlikely to have a material impact on the CBA stock price today, The Australian reports that sources have said the great thing Bank has Vocus Retail in its sights.
Vocus Retail offers broadband, wireless, voice and energy services. And the company is set to officially go public through UBS in the coming days.
Now, if you’re not familiar with all of CommBank’s services, acquiring a company like Vocus might seem a bit odd. However, the bank already offers broadband and certain utility services.
According to CBA:
We are proud of that Partnering with Australian owned companies that provide better outcomes for our customers and community, such as B. More nbn.
More is a forward-thinking, customer-centric provider of internet and phone plans that can connect your home or business and help you save money.
You may also remember the days when Vocus was listed on the ASX. Those days ended in June 2021 when the company was delisted after accepting a takeover proposal from a consortium consisting of Macquarie Infrastructure and Real Assets and its funds under management, and Aware Super.
But CBA isn’t the only big name that seems to be eyeing Vocus Retail.
Corresponding The Australian, Origin Energy Ltd (ASX:ORG), Aussie Broadband Ltd (ASX:ABB) and AGL Energy Limited (ASX: AGL) may all be interested in acquiring the company.
CBA stock price snapshot
The CBA stock price has not been immune to the forces that have weighed on global equities (we see you, rising inflation and interest rates) this year, although it has outperformed the benchmark.
CBA shares are down 7% year-to-date. This compares to a 10% loss seen by the ASX 200 so far in 2022.
The Big Four Bank is also a popular income stock. At the current share price, CBA pays a trailing dividend yield of 3.9%.