Shin Kong Financial says Taishin is its preferred bidder despite higher CTBC offer

CTBC Financial Holding Co

03/09/2024 09:55

TAIPEI, Sept 3 (Reuters) - Taiwan's Shin Kong Financial
 2888.TW  said on Tuesday that it sees Taishin  2887.TW  as its
preferred bidder despite having received a higher $4.1 billion
offer from CTBC Financial  2891.TW .
CTBC late last month sweetened its bid for Shin Kong, offering
T$131.4 billion for a 51% stake, compared with an earlier offer
to buy 25% of the company. Taishin 
     Taishin has offered a more concrete plan for Shin Kong
employees, Shin Kong said in a statement at an investor
conference to explain its earnings.
     "Financial services industry mergers are very complex and
delicate. Making deals bigger with higher price tags does not
mean they can be executed smoothly," it added.
    CTBC said last week that it would focus on securing
regulatory approval before purchasing Shin Kong shares on the
market.     
    Shin Kong plans to submit a merger plan with Taishin to
shareholders at an extraordinary general meeting on Oct. 9. If
approved by shareholders, Shin Kong would then apply for
regulatory approval.
    Shin Kong's shares have surged 19% since the beginning of
August, while those of Taishin have fallen 5% and those for CTBC
have lost 7%
     

(Reporting by Faith Hung; Editing by Edwina Gibbs)
((mailto:faith.hung@thomsonreuters.com))