ANZ Bank facing cartel prosecution
ANZ Bank says the Commonwealth Director of Public Prosecutions is set to take action against the bank for being "knowingly concerned in alleged cartel conduct" in relation to a 2015 capital raising.
ANZ said it had been told late on Thursday about the action, which it would defend. The bank's shares fell as much as 2.4 per cent to $26.55 when the market opened.
"ANZ understands the CDPP also intends to bring proceedings against ANZ Group Treasurer Rick Moscati," the bank said in a statement.
ANZ chief risk officer Kevin Corbally said: “We believe ANZ acted in accordance with the law in relation to the placement and on that basis the bank intends to defend both the company and our employee.”
The bank said the action related to an "arrangement or understanding" allegedly made between the joint lead managers in relation to the supply of ANZ shares. The August 2015 institutional placement was fully underwritten by Citigroup, JP Morgan, and Deutsche Bank.
The proceedings follow an investigation by the Australian Competition and Consumer Commission. The watchdog confirmed criminal charges were likely to be laid against ANZ Bank, two other companies and some other individuals.
“The charges will involve alleged cartel arrangements relating to trading in ANZ shares following an ANZ institutional share placement in August 2015,” ACCC chairman Rod Sims said. “It will be alleged that ANZ and the individuals were knowingly concerned in some or all of the conduct.”
ANZ also said on Friday morning it was cooperating with an investigation by the Australian Securities and Investments Commission over the placement of about 80.8 million shares in the bank.
ANZ said ASIC was investigating whether ANZ's announcement at the completion of the raising should have said the joint lead managers took up about 25.5 million shares, which was equal to 0.91 per cent of shares on issue at that time.
More to come