Tuesday, October 8, 2013

Medibank Private boss says selloff in first Coaltion term "likely"

The anticipated multi-billion sale of Medibank Private could take place in the Coalition government's first term.

The publicly owned insurer's managing director George Savvides has told The World Today the selloff remains a key Coalition goal.

"I think it is designed that way and certainly we will respond in a manner required to meet the expectations of the owner," Mr Savvides said.

"But I suspect it will be in the first term."

Listen to my exclusive interview with George Savvides.

The sale speculation was ramped up as Medibank Private announced a 83.8 percent increase in full year profit to $233 million.

Membership rose to 3.8 million members during last financial year, and the company says it has 29.5 per cent market share.

Medibank was valued at more than $4 billion during the Howard Government in 2006.

But with today's price thought to be around half that, the government appears to be waiting for the the right time and a better price tag.

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