Merchants Bank rejoins Wing Lung deal -report

Wed May 7, 2008 10:11pm EDT
 
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HONG KONG, May 8 (Reuters) - China Merchants Bank (600036.SS: Quote, Profile, Research, Stock Buzz), the country's fifth-largest bank, has rejoined the bidding for Hong Kong lender Wing Lung (0096.HK: Quote, Profile, Research, Stock Buzz), the South China Morning Post said on Thursday.

China Merchants had earlier dropped out of the bidding. Wing Lung has said its largest shareholders -- Wu Jieh Yee Co and Wu Yee Sun Co, which own a combined 53.1 percent -- were considering their options, including a sale of the family-run bank that could lead to an offer for all the shares.

Wing Lung's market value is $4.25 billion. Some analysts have said it may fetch $4.8 billion.

Industrial and Commercial Bank of China (601398.SS: Quote, Profile, Research, Stock Buzz), the world's biggest bank by market value, has been vying with Australia and New Zealand Banking Group Ltd (ANZ) (ANZ.AX: Quote, Profile, Research, Stock Buzz), Australia's third-biggest lender, for a controlling stake in Wing Lung.

Final bids are expected some time in the next week or two.

(Reporting by Michael Flaherty; Editing by Anne Marie Roantree)

 

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