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.