Fubon, HSBC bid for Danamon

Fubon, HSBC bid for Danamon

SINGAPORE: International and regional financial institutions,
including Taiwan's Fubon Financial and HSBC, are among the
leading bidders for Indonesia's Bank Danamon, a Singapore
newspaper said Wednesday.

The Indonesian Bank Restructuring Agency (IBRA), set up in the
aftermath of the 1997 financial crisis to salvage the country's
battered banking system, is currently seeking a buyer for Bank
Danamon, in which it holds a majority stake.

Fubon, one of Taiwan's largest financial services groups, has
emerged as a leading contender for Bank Danamon, Indonesia's
fifth largest bank, sources told The Business Times daily.

With a market capitalization of US$6.5 billion, and with
Citibank as a shareholder, Fubon could provide stiff competition
to the other bidders, including the Singapore government's
Temasek Holdings.

Seventeen investors are considered likely to make preliminary
bids with the 51 percent stake sale to be wound up by late April.