DealZone

National Australia Bank is selling new shares to raise up to US$2.25 billion to help it scout for acquisitions, it says. The fundraising will also be used as a buffer against rising bad debts, but the unexpected share sale by Australia’s largest lender will also allow it “to pursue value creating opportunities,” according to its CEO.

Just last month, NAB bought most of British insurer Aviva’s Australian businesses for A$825 million to expand in wealth management.

In other deal news reported by Reuters and other media:

Procter & Gamble is in advanced talks to sell its prescription-drug business with several parties, including specialty drugmaker Warner Chilcott and private equity firm Cerberus Capital Management, the Wall Street Journal reports, citing people familiar with the matter.

China’s Tengzhong, the surprise leading bidder for the General Motors’ Hummer brand, is likely to establish an offshore investment vehicle to facilitate its purchase, a company official said.

A group of computer memory chip makers led by Taiwan’s Nanya Tech, Inotera and U.S.-based Micron is considering acquiring smaller rival Winbond, a local newspaper reports. Click here for the Reuters story.