TAIPEI Feb 13 Plans by Taiwan's Waterland
Financial Holdings Co to acquire domestic lender
King's Town Bank have hit a snag over the estimated
$1.2 billion price tag, two people with direct knowledge of the
matter said on Thursday.
Waterland Financial, partly owned by the Taiwan government,
has previously said it wants to buy King's Town Bank. The
sources said Waterland's board would meet next month to discuss
Waterland has proposed offering King's Town Bank T$31 ($1) a
share, but the government is concerned that this price is too
high, the sources said. The lender has 1.2 billion outstanding
The government is also worried that its position on
Waterland's board may be diluted if the company decides to issue
new shares to finance the purchase, the sources said.
The sources declined to be identified as the matter is not
yet public. Officials at both Waterland Financial and King's
Town Bank were not immediately available to comment.
Taiwan's government is encouraging consolidation in the
crowded banking sector to ease stiff competition.
This week, China Development Financial Holding
said it would acquire Taiwanese lender Cosmos Bank for
about $760 million.
(Reporting by Emily Chan; Writing by Faith Hung; Editing by