-- CIMB Group Holdings is to acquire General Electric's 25%
stake in Bank of Ayudhya, Thai newspaper reports
-- Thai unit of CIMB Group, Bank of Ayudhya and General Capital
decline to comment
(Adds Thai unit of CIMB Group declining to comment in the 3rd
paragraph, context in the last two paragraphs.)
By Oranan Paweewun and Phisanu Phromchanya
BANGKOK--Malaysia's CIMB Group Holdings Bhd. (1023.KU) is set to
acquire General Electric Co.'s (GE) 25% stake in Thailand's Bank of
Ayudhya PCL (BAY.TH), Thailand's Kaohoon newspaper reported Monday,
citing an unnamed source.
CIMB Group is negotiating the price, it said, adding that the
Malaysian bank plans to merge its local unit, CIMB Thai Bank PCL
(CIMBT.TH), with Bank of Ayudhya, Thailand's fifth largest lender
by assets.
CIMB Thai Bank and Bank of Ayudhya declined to comment on the
report.
A GE Capital spokesman said Monday the company doesn't comment
on market speculation, but it continues to review the strategic
options for its remaining interest in Bank of Ayudhya.
The report came after GE raised $466 million by selling a 7.6%
stake in Bank of Ayudhya late last month through a block trade to
large domestic and institutional investors at 31.30 baht ($1.01) a
share. GE initially bought a 25% stake in Bank of Ayudhya in 2007
at THB16 a share and subsequently raised its holding to 32.9%.
CIMB Group has been pursuing acquisitions in Asia as it seeks to
expand outside of its home turf, partly because of intense
competition. The bank said in August that it was on track to
complete the purchase of a 60% stake in privately held Bank of
Commerce in the Philippines and that it would continue to pursue
the acquisition of a 50% stake in RBS Morgan in Australia from
Royal Bank of Scotland Group PLC.
Write to Oranan Paweewun at oranan.paweewun@dowjones.com and
Phisanu Phromchanya at phisanu.phromchanya@dowjones.com
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