WESTPAC could be prepared to increase its $19 billion offer for St George if it felt "circumstances warranted", in an effort to seal the deal ahead of any rival bid.

QBE has sweetened its takeover offer for fellow insurer IAG, but says the target has indicated it thinks the $8.7 billion bid is still too low.

MICROSOFT has reached out to Yahoo about an alternative deal that would not involve a full acquisition, the company said overnight.

THE Australian dollar was higher at noon as surging commodity prices and a weak US dollar lifted the currency to a 24-year high.