IWL confirms support for CBA offer

Online broker IWL has had an independent expert review the Commonwealth Bank's $350 million takeover offer to see if it is still fair after posting higher than expected first-quarter profits. Pre-tax profit for the September quarter was $10.2 million, double the result for the same period last year and 15 per cent higher than the previous quarter. The bumper profit result was due to increased trading levels in the quarter which have since dropped off as markets have settled down. The review said that, as the results should not be regarded as sustainable, the value of $311 million to $346 million reflected the long term earnings potential of the company. IWL has urged investors to vote in favour of the $6.45 share offer at the scheme of arrangement meeting next Wednesday.