Standard Chartered to buy into Everbright
9/6/2004 16:54
Negotiations are well under way for Standard Chartered to buy at least
15 percent shares in China Everbright Bank, the Youth Post reported
today.
Several days ago Standard Chartered lost a fight with the Shanghai and
Hong Kong Banking Corporation (HSBC) to buy into the Bank of Communications.
The bid failed mainly because Standard Chartered is not willing to be a
small shareholder. The company expects to control as many shares as possible in
the bank, said an industry analyst, adding that Standard Chartered wants to have
a say in the management of the Bank of Communications and is not willing to only
invest money.
"More than one Chinese bank is negotiating with us, and we
expect to have a partner by the end of this year," said Qian Jing, spokesman
with the Standard Chartered's Chinese operations.
The head office of the
China Everbright Bank, however, declined to release information.
In October
1996, the Asian Development Bank paid nearly US$19 million to purchase 92.222
million shares of China Everbright Bank, which was 3.29 percent of the bank's
total capitalization. It was the first time for a foreign bank to buy into a
domestic one.
To prepare for the challenges after China's entry into the
World Trade Organization, domestic banks are now seeking overseas partners, said
an industry analyst.
Wendy Zhang/ Shanghai Daily news
|
