Medibank Private sale to go ahead in 2014/15

[nero_bolt]

Good move... and about time 

I will get the popcorn as this will be an interesting thread 🙂 

MEDIBANK Private will be sold off to the public in the next 15 months, Finance Minister Mathias Cormann has announced.

Senator Cormann declined to speculate on how much the government-owned health insurer may be worth, although experts have estimated its value about $4 billion.

While it will occur in the 2014/15 financial year, the precise timing and structure of the initial public offering are yet to be determined.

Medibank Private, set up in 1976 under the Fraser government to provide competition to for-profit health funds, is Australia’s largest private health fund, with 3.8 million members.

The decision to proceed with the sale follows the report of a scoping study which “reaffirmed our long-held view that there is no compelling reason for the government to own Medibank Private,” Senator Cormann said.

“Medibank Private is a commercial business operating in a well-functioning, well-regulated competitive private health insurance market with 34 competing funds.

“There is no market failure in the health insurance market.”

The scoping study found no evidence premiums would increase following a sale, Senator Cormann said.

“The sale of Medibank Private will remove the inherent conflict currently in place where the government is both the market regulator and the owner of a large participant in the market.”

To facilitate the privatisation, the government has appointed three new board members – Clayton Utz corporate lawyer David **bleep**an, and experienced company directors Linda Nicholls and Christine O’Reilly.

Senator Cormann said the proceeds from the sale would be recycled to invest in productivity and infrastructure, further details of which would be revealed in the May budget

http://www.theaustralian.com.au/national-affairs/medibank-private-sale-to-go-ahead-in-201415/story-f...

[nero_bolt]

Hahaha the naughty word filter has bleeped a persons name

Clayton Utz corporate lawyer David **bleep**

It should read David F a g a n,

Think the people at at Lithium may have their filters screwed down to tight when it takes out a persons name... 

[freakiness]

Don't choke on all that popcorn.

[nero_bolt]

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@freakiness wrote:

Don't choke on all that popcorn.

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Just for you I wont...... 🙂

[lakeland27]

no surprise there. income is around half a billion dollars a year , one of their friends was always going to want to buy. premiums up , service down.

[icyfroth]

saw that coming a mile off.

[pct001wine]

I don't see that the sell-off of assets like this is anything to be applauded, regardless of the lame reasoning that cormann submitted.

Short-term gain, balance the budget, "oh look at me, how clever I am", asset lost forever.

And before you accuse me of some sort of lefty bias, I don't agree with these sort of asset fire-sales, be it power, water, transport, whatever. Labor did it, I disagreed with it then, I disagree with it now.

[icyfroth]

totally agree.

[monman12]

At last the sale will n9ow proceed.  It has been sitting  on the books throughout the Poor Me and Rudd circus years untouched (??)

Listening to the ABC today their poll question, supposedly addressing whether the community agreed with the sale,  was couched in these terms:   "Will you buy shares in Medibank Private, when it's sold-off by the Federal Government?"

Gosh I wonder what the result will be to that very "loaded" question, and how many people in the community buy/sell shares directly?, 35% !!   So that gives us the poll answer already,   and if you then add in the term "sell off", why not "sell",  or "float" etc, because in trading terms  "sell off" insinuates dumping a company/stock, I think a teeny weeny NO might pop up.

How many CSers Will  buy shares in Medibank Private, when it's sold-off (floated) by the Federal Government?

I will study the IPO (initial public offering) documents, chat with my stockbroker of many years, then decide. At first glance It appears a likely investment, and while guessing the possible "NO" protestations from the pink gang, I would assert that holdings in Medibank will be a necessary part of most managed funds and superannuation funds in the future.

[lakeland27]

oddly enough i found the loaded question stupid as well, but most likely for different reasons. the question posed by the (noticeably timid )ABC should have been "do you support the sale'' .

if i have funds available of course its something worth considering , for the same reasons its stupid and shortsighted to sell it;

between Bupa and medicare private whats the market share ? around  90% between them i think.. a near monopoly.

welcome to the united states of health care .