Citibank suspends Thai move

Citibank suspends Thai move

BANGKOK (AFP): U.S. banking giant Citibank NA has suspended
groundbreaking moves to take over a crippled Thai institution
after the central bank ordered a major shake-up at the local
bank, it was announced yesterday.

Citibank NA, which in November announced it would take a
majority stake in First Bangkok City Bank plc (FBCB), has
formally advised FBCB that it had suspended a due diligence probe
into the bank, FBCB said.

FBCB president Sirivuth Siambhakdee said Citibank had informed
FBCB in writing that the due diligence process had been suspended
and that any further due diligence "would be pursuant to a new
contractual agreement."

The move effectively ends the memorandum of understanding
between the two institutions and puts paid to what was to be the
first-ever takeover by a foreign institution of a Thai bank,
analysts said.