OCBC, Singapore's second-biggest bank, said on Tuesday it would not increase its offer for Wing Hang Ltd, even as US hedge fund manager Elliott Management Corp took a near 8% stake in the Hong Kong lender.
Oversea-Chinese Banking Group (OCBC), which made a US$4.95 billion bid earlier this year for Wing Hang, has already gained over 50% of the Hong Kong lender, but needs 90 per cent to delist Wing Hang's shares from the market.
The deal is intended to give the Singapore lender a much sought-after gateway to the Greater China region.
Elliot, which was founded by billionaire Paul Singer, has been buying shares to put pressure on OCBC to sweeten the deal for minority shareholders, Mizuho Securities said in a research note last week.
Bankers for OCBC said in a regulatory filing that the offer price for Wing Hang shares would remain at HK$125 per share ($20 per share). OCBC's offer will close on July 29.
Bank of America Merrill Lynch and JPMorgan are advising OCBC.
No comments:
Post a Comment