Shin Kong Financial says Taishin is its preferred bidder despite higher CTBC offer
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 and Shin Kong had agreed to a share swap deal earlier in August that would exchange 0.6022 Taishin share for one Shin Kong share. But in the wake of CTBC's new offer, Taishin has said it is open to revising its offer higher.
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
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