Fubon to purchase a major stake in Investment Trust

Fubon Group (富邦集團), a Taiwanese insurance, banking and securities conglomerate, plans to buy Central Investment Holding Co's (中央投資) stake in International Investment Trust Co (國際投信), giving it control of the fund manager, a Chinese-language newspaper reported, without citing anyone.

Fubon Group wants to pay between NT$60 and NT$70 a share for the 24 percent holding owned by Central Investment, the investment arm of the KMT, the newspaper said.

Fubon already holds a 13 percent stake in International Investment Trust, Taiwan's largest money manager established in 1983, the paper said.

As a part of the government's plan to encourage domestic financial institutions for further consolidation, Fubon last month received government approval to form a holding company.

Fubon combining its five affiliates Fubon Insurance Co (富邦產險), Fubon Commercial Bank (富邦銀行), Fubon Life Assurance Co (富邦人壽), Fubon Securities Co (富邦證券) and Fubon Securities Investment Trust Co (富邦投信) into one holding company. The company will start trading on the stock exchange on Dec. 19.