Boutique Adviser Wins Medibank Sale
The Australian Financial Review
17 September 2002

The Federal Government yesterday announced the firms that will undertake scoping studies into the potential privatisation of Medibank Private and the property assets of the Defence Housing Authority.

The Medibank study will be done by boutique advisory firm Carnegie, Wylie & Company. The legal advisers on the study will be Freehills.

The Defence Housing Authority study will be done by Macquarie Bank. Legal advisers on this study will be Coudert Brothers.

Analysts estimate Medibank Private which is expected soon to announce a loss of up to $175 million for the past financial year could realise between $500 million and $1 billion if sold off. The country's biggest private health fund announced plans yesterday to upgrade some of its walk-in claim centres as part of its efforts to improve its performance.

The Defence Housing Authority is a property owner with assets totalling about $1.1 billion, as well as an accommodation and relocation business.

The scoping studies which will look at the government's options do not mean either business will definitely be sold.

"One of the strengths of the CWC proposal was the firm's clear understanding that one of the fundamental questions of the scoping study is whether Medibank Private should be sold, not just identifying a preferred method for sale," said Finance Minister Nick Minchin.

Carnegie, Wylie & Company which was formed in early 2000 by investment bankers Mark Carnegie and John Wylie beat many of its much larger competitors to the plum role. This was put down in part to the relationships Mr Wylie, formerly of Credit Suisse First Boston, built up in Canberra after working on various privatisations, including Telstra.

Carnegie, Wylie senior associate Jay Wacher said: "It's a major positive for the boutique advisory model."

Both studies are expected to be completed by the beginning of 2003.

Australia will face a massive nursing shortage in the next five years unless measures are taken to keep nurses from leaving the profession, according to a report released yesterday. It said more than 22,000 nurses would leave the workforce over the next five years, and made 36 recommendations to improve the image of nursing and make it a respected profession.