Indonesia will find it difficult to block DBS Group’s US$7.2 billion ($9.1 billion) bid to take over Bank Danamon based on current rules, and any rejection could dent investor sentiment, the Singapore lender’s chief said on Wednesday.
DBS Chief Executive Piyush Gupta said he was "fairly confident" of approval in six months of what would be the biggest takeover of an Indonesian firm, despite rumblings of nationalism from some local bankers and politicians looking towards elections in 2014.
“A transaction of this nature falling through - despite being legally valid and within regulations - could be a huge impediment for future sentiment and future (investment) flows,” Gupta told Reuters in an interview.
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