It was doomed to fail, and am I the only person to anticipate it? Don't people at Temasek and DBS learn from Singapore's other aggressive and unwelcomed acqusitions?
Swinging your big dick around this neighbourhood isn't class.
by Agencies
04:45 AM Jun 02, 2012
SINGAPORE - DBS Group is unlikely to pursue its planned S$9.1 billion acquisition of Bank Danamon if Indonesia implements a proposal to cap bank ownership by financial institutions to 40 per cent for new investments, CIMB said yesterday.
"With only a 40-per-cent stake, it will be difficult for DBS to inject the additional capital and liquidity that Danamon sorely needs. Without additional capital and liquidity, the promise of 'higher-growth, return on equity accretion' may not be delivered and if so, the price paid would not be justifiable," CIMB said.
DBS plans to buy a 67.4 per cent stake held by Temasek Holdings in Bank Danamon and make a general offer for the rest of the shares.
Both DBS and Temasek Holdings have declined comment.
Meanwhile, DBS said it has hired veteran Chinese banker Neil Ge, 53, as CEO-designate in China.
Mr Ge joins DBS from Credit Suisse Founder Securities, where he was a managing director and previously CEO.
