OCBC Dismisses Elliott Stake In Bank It’s Buying

Jul 11 2014 | 7:18am ET

Oversea-Chinese Banking Corp. isn’t worry about Elliott Management’s machinations with regard to its planned purchased of Wing Hang Bank.

Elliott has bought up a nearly 8% stake in Hong Kong-based Wing Hang, nearly enough to prevent OCBC from delisting it after it closes its US$5 billion deal for the bank. But the Singapore-based firm does not appear overly concerned about that prospect, saying the “most important thing” was to gain control of a majority of shares to seal the takeover, which it has done.

“We know that they’re there, but in terms of would it distract us or change us from what we’re currently doing, it will not,” OCBC CEO Samuel Tsien told Bloomberg News. “We’ll just proceed according to the general offer document and if we cannot get 90%, we’ll keep the company listed.”

It is unclear what Elliott’s plans for its stake are. The hedge fund could be seeking a higher price from OCBC, or it could be making a longer-term play on Wing Hang’s real-estate holdings or on OCBC’s ability to improve the bank’s performance.

If it is the former, Tsien does not appear inclined to pay more.

“The price we paid is fair and very reasonable, so whatever happens in the market is something that the investors would have to consider,” he said. “We’ll continue with the strategy because the value will still be realized as long as we own more than 50%.” 


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR