Despite news that a Cathay Financial Holdings Co (國泰金控) unit bought a 3.06 percent stake in First Financial Holding Co (第一 金控) as of the end of last year, Minister of Finance Lin Chuan (林全) said that a merger for First Financial will be postponed.
First Financial chairman Steve Shieh (謝壽夫) said last year that the lender was planning to seek buyers or merger partners.
"But Shieh has confirmed with the ministry that the company will place more importance on its internal organizational restructuring than seeking a merger partner in the near future," Lin said yesterday during a briefing with reporters.
Lin also said that PriceWater-house Cooper (普華國際財務公司), which helped conduct a merger feasibility report for First Finan-cial, will release their analysis soon. He didn't specify a time.
He made the remarks after a Chinese-language newspaper reported that Cathay Life Insurance Co (國泰人壽) last year added almost 170 million shares of First Financial to become its largest private shareholder.
The paper said Cathay Financial hasn't rule out the possibility of bidding to take over the state-controlled First Financial, citing Cathay Financial's chief strategic officer Lee Chang-ken (李長庚).
The finance ministry owns 14.9 percent of First Financial, the Bank of Taiwan (台灣銀行) owns 8.1 percent and Hua Nan Commercial Bank (華南銀行) owns 2.97 percent, the paper said.
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