Australia's St George open to more bids: paper

SYDNEY (Reuters) - St George Bank (SGB.AX: Quote, Profile, Research, Stock Buzz), whose board has recommended a $17.6 billion bid from Westpac Banking Corp Ltd (WBC.AX: Quote, Profile, Research, Stock Buzz) in Australia's biggest banking takeover in corporate history, is open to other bids, a newspaper cited a senior company official as saying on Saturday.

In an interview with The Australian newspaper, St. George Bank's Chief Executive Paul Fegan said he expected other banks in Australia and around the world would be monitoring the current takeover bid.

"Under the agreement we have with Westpac we can't shop or talk (with other potential bidders)," he said. "But we can answer our telephones. And the phones have been very busy."

Fegan told the newspaper that St George's board was still free to consider any other improved offer, right up until the day it holds a shareholders meeting, to consider the Westpac offer.

The combined entity would have a market capitalization of around A$66 billion ($62.3 billion), overtaking Commonwealth Bank of Australia's (CBA.AX: Quote, Profile, Research, Stock Buzz) A$61 billion. It would rank second to National Australia Bank (NAB.AX: Quote, Profile, Research, Stock Buzz) by asset value.

Shares in St George fell 0.6 percent on Friday to close at A$33.28 and Westpac gained 0.8 percent to A$24.86, while the overall market was up 0.7 percent.

($1=A$1.06)