(04 December 2012 – Thailand) Competition has heated up for a US$1.5 billion (A$1.44 billion) stake in Thailand’s Bank of Ayudhya (BAY).Both Japan’s Mitsubishi UFJ Financial Group and Malaysia’s CIMB Group Holdings have lodged bids.
Singapore’s Oversea-Chinese Banking Corp, which was earlier seen as a potential bidder, did not submit a first-round bid, the sources said.
It is speculated that Siam Commercial Bank could be a bidder for Bank of had not held any merger negotiations with GE Capital on Bank of Ayudhya.
Under Thailand’s single presence policy, a local bank cannot hold a stake in another bank, which led to speculation that the two banks could be merged.
GE received multiple bids last week for its 25.3 percent stake, with second round offers due after December 25, according to sources with direct knowledge of the matter.
The outcome of GE’s sale process is being closely watched by ING, which is also preparing to offload its 31 percent stake in TMB Bank plc, which is worth about US$786 million.