Wednesday, June 22, 2011

Maybank, CIMB reported to have dropped RHB plans

Malaysia’s two largest banks, Malayan Banking Bhd and CIMB Group, have dropped their plans to take over RHB Capital, Singapore’s Straits Times reported today, citing executives close to the situation.

“Pricing wise, the takeover doesn’t make much sense now,” the Straits Times quoted a senior financial executive, who spoke on condition of anonymity. “There is going to be a cooling down and the two banks may revisit the prospect of a merger with RHB at some other time.”

The decision came after one of RHB’s shareholders, Abu Dhabi Commercial Bank, signed the sale agreement of its 25 per cent stake in RHB with Abu Dhabi-based investment fund Aabar Investments for RM10.80 a share.

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