(1 June 2004 – Singapore) United Overseas Bank has turned down state owned Temasek Holding’s revised bid for its property business United Overseas Land.Temasek put in a second bid of $$780 million for 49 percent of the business, 10 percent higher then its original bid.
In a statement, UOB said: “The board, in consultation with its financial advisor, decided to continue to consider all options that might be available to UOB in relation to its shareholding in UOL.”
Last week, UOL said it was exploring other ways of unlocking shareholder value and that Temasek’s bid was lower than its book value of S$3.31 a share.
UOB has appointed Credit Suisse First Boston to arrive at other strategies for selling UOL.
UOL owns four percent of UOB, which is required by law to shed non core UOL investment by the middle of 2006.