IBRA chief wants improved bids for Lippo<\/p>\n
Agence France-Presse, Singapore<\/p>\n
The Indonesian Bank Restructuring Agency (IBRA), tasked with
\nreforming the country's banking sector, said here on Monday it
\ncould halt the planned divestment of Bank Lippo unless interested
\nparties improved their bids.<\/p>\n
"If they can't strengthen their consortium, I think I could
\nstop the divestment this year," IBRA chairman Syafruddin
\nTemenggun told reporters on the second day of the World Economic
\nForum's East Asia forum.<\/p>\n
"I met them last week the three investors and they promise me
\nto strengthen the bids."<\/p>\n
Temenggun declined to say the price tag he was looking for
\nfrom the bidders but said his comments to investors "is to do due
\ndiligence because there's potential upside."<\/p>\n
Citing previous sales of major banks as a guide, Temenggun
\nsaid Bank Danamon was sold to a consortium co-led by Singapore's
\nTemasek Holdings, a state investment arm, at almost 1.3 times the
\nbook value of the bank.<\/p>\n
IBRA is selling 52 percent of Bank Lippo through a strategic
\nsale and three consortium, representing investors from Hong Kong,
\nIndonesia and Singapore, have shown interests.<\/p>\n
IBRA was set up in early 1998 to restructure the foundering
\nlocal banking system after the 1997-1998 regional financial
\ncrisis sent the sector into a tailspin.<\/p>\n
It is disposing of assets that were pledged to settle debts
\nowed to the government following a massive bank bailout.<\/p>",
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"sponsor": "Okusi Associates",
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