BoCom drops from Wing Lung Bank auction -source
HONG KONG, April 22 (Reuters) - China's Bank of Communications (601328.SS)(3328.HK) has pulled out of the auction for Hong Kong's Wing Lung Bank Ltd 0096.HK, a source familiar with the matter said on Tuesday, leaving just two banks in the hunt for a bank that is expected to fetch roughly $4.8 billion.
The source did not clarify why the state-run Chinese bank dropped out of the running. One person involved in the deal suggested one reason was that the Chinese government does not want two state-run companies bidding for the same asset, thus inflating the price of the deal.
Several media outlets have reported that Industrial & Commercial Bank of China Ltd (1398.HK)(601398.SS) is bidding for a stake in Wing Lung. The other bidder is Australia and New Zealand Banking Group Ltd (ANZ) (ANZ.AX), Australia's third-biggest lender, an industry source has previously told Reuters.
Last month, Wing Lung said two of its largest shareholders were considering a possible sale of the family-run bank.
Wing Lung's two main shareholders, Wu Jieh Yee Co and Wu Yee Sun Co, own a combined 53.12 percent in Wing Lung. The bank said the two are considering their options, including a possible sale that could lead to an offer for all the shares in Wing Lung.
Wing Lung's market value is $4.2 billion, and some analysts say the bank could sell for around $4.8 billion. Its shares were down nearly 2 percent amid a broader market sell-off on Tuesday. (Reporting by Michael Flaherty, Editing by Tony Munroe)
