Australia ACCC Chairman Samuel Steps Aside From AXA APH/NAB Merger Case

Australian Competition & Consumer Commission Chairman Graeme Samuel on Wednesday stood aside from deliberations on National Australia Bank Ltd.'s (NABZY) bid for AXA SA's (AXAHY) Asia Pacific unit to avoid perception of conflict of interest in relation to his family's investment in the DFO shopping center chain.

The ACCC said NAB and target AXA Asia Pacific Holdings Ltd. (AXA.AU) have been consulted and expressed no concern at Samuel's continuing involvement.

"However, the commission accepted Mr. Samuel's position that he would cease to be involved in any further Commission deliberations on the NAB/AXA merger proposal," the regulator said in a statement.

"Mr. Samuel advised that he considered this course of action necessary to remove any perception of a conflict of interest arising from current issues concerning his family's investment in the DFO shopping center chain."

The DFO shopping empire owes A$450 million to a lending syndicate comprising NAB, St. George Bank Ltd. (SGB.AU), Suncorp-Metway Ltd. (SUN.AU) and Bank of Scotland International, people familiar with the situation told Dow Jones Newswires Tuesday. The banks could appoint Korda-Mentha as receiver after refusing to pay further credit to DFO and on Monday serving notices expiring at midday Tuesday calling in the company's loans, one person said.

-By Rebecca Thurlow, Dow Jones Newswires; 61-2-8272-4679; [e-mail]