Hong Kong lender tests Elliott’s patience anew

The Bank of East Asia

24/09/2020 03:12

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Jennifer Hughes
    HONG KONG, Sept 24 (Reuters Breakingviews) - After a long
review, $6 bln Bank of East Asia is ready to sell its life
insurer. It also promises better cost controls and hints at more
deals. Since the pushy hedge fund showed up in 2015, however,
the stock price has halved. Perseverance may be less rewarding
than in Argentina.     
    Full view will be published shortly.
    On Twitter https://twitter.com/JennHughes13
    
    CONTEXT NEWS
    - Bank of East Asia said on Sept. 23, following the
completion of a six-month strategic review, that it plans to
sell its life insurance business. The move is supported by hedge
fund firm Elliott Management, which has been urging changes at
the Hong Kong-based lender since 2015.
    - For previous columns by the author, Reuters customers can
click on  JHUGHES/ 
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    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Bank of East Asia to sell insurance business with Elliott
backing     urn:newsml:reuters.com:*:nL3N2GK1D5
HK's Bank of East Asia to review assets, halting legal battle
with Elliott     urn:newsml:reuters.com:*:nL4N2AX073
BREAKINGVIEWS-War with Bank of East Asia may be short on spoils 
   urn:newsml:reuters.com:*:nL4N2AX0IO
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Editing by Robyn Mak and Sharon Lam)
 ((jennifer.hughes@thomsonreuters.com; Reuters Messaging:
jennifer.hughes.thomsonreuters.com@reuters.net))