Medibank Private sale
The Australian
7 September 2005

Boutique investment bank Carnegie, Wylie & Co has again been chosen to advise on the sale of health insurance giant Medibank Private, two years after its first report led the federal Government to dump the idea.

Yesterday Finance Minister Nick Minchin appointed CWC as business adviser to the update of the possible sale's scoping study, expected to be completed by the end of the year.

Last month the Government announced that it was again reviewing its ownership of Medibank Private and would update the original 2003 scoping study, which recommended the Government boost profits at the insurer before a sale.

Since then Medibank Private has gone from a $175 million annual loss to a $45million profit last year as premiums rose significantly.

The sale in 2003 would also probably have been blocked in the Senate, in which the Government now enjoys a majority.

The Government is expected to reap $500 million to $1 billion from the sale. Rival insurer MBF has expressed interest in buying part or all of Medibank.

Other interested buyers are believed to be British-