Public Bank please swallow Hong Leong Bank ALIVE !!!!

This post has been edited by MilesAndMore: Nov 16 2009, 01:25 PM

There is a rumor they might takeover Bank of East Asia. Bank of East Asia is Hong Kong's third largest bank. Feel sorry for those at Bank of East Asia if it happens

That is just a dream of my own. Public Bank has said it over and over again that they are focusing on organic growth for domestic market as well as overseas expansion. So taking over another banking group in Malaysia in kind of not in the book but i still hope someday somehow they will reconsider this decision as there aren't many choices anymore. Right now the options are only either Hong Leong Bank, EON Bank or Alliance Bank as all other banking groups are off-limits to them

The rumors of Hong Leong Bank taking over only started circulating when Guoco Group upped their shares in Bank of East Asia last week and Bank of East Asia is holding 20.5% stakes in Affin Bank. The take over of Affin Bank is only likely to happen should Guoco Group decides to buy over Bank of East Asia. This is because Guoco Group, which is related to Hong Leong Group are only allowed to control one bank in Malaysia.

I personally however, do not think this will happen mainly because Affin Bank is a Bumiputra controlled bank. We all know what kind of government we have. Therefore i don't think the government will allow it. The take over of either EON Bank or Alliance Bank are more likely as both banks are Chinese majority controlled banks.

If miracle does exist and Hong Leong Bank is allowed to take over Affin Bank. Then they would be couple made in heaven as both are equally sorry banks

This post has been edited by MilesAndMore: Nov 16 2009, 10:13 PM

Before Guoco Group proceeds to buy over Bank of East Asia, they must resolve the issue with Affin Bank first as this is a clear violation of the banking law in Malaysia. They would have some serious antitrust issue. It's either they proceeds to take over Bank of East Asia and quickly dispose Bank of East Asia's stakes in Affin Bank or convince the Malaysian banking regulator to allow them to merge Hong Leong Bank with Affin Bank.

One of the reasons why not much is happening with the possible merger of Hong Leong Bank and EON Bank is because major shareholders of both banks want to control the merged bank and Quek Leng Chan simply would not let that happen. The share price of EON Bank is also another issue.

If Hong Leong Bank is marrying Affin Bank, the current owner of Affin Bank (Lembaga Tabung Angkatan Tentera) will emerge as a substantial shareholder in the merged bank and Quek won't like that idea either.

Anyway, it still remains a question if the Li family is willing to sell off their family's legacy. I hope they won't as Guoco Group will just screw up the bank. Besides, Hong Leong abandoned Hong Kong just barely 10 years ago by selling Dao Heng Bank to DBS Bank. They better just sell it to a banking corporation that is committed to the Hong Kong market.

@ derictsl,

You should consider writing to the press.

No worries. I mean you can write a complaint letter to Star Newspaper. There is a section reserved for the public to voice their thoughts or complaint.