Taiwan Cooperative rebuts report on BNP Paribas sale

Taiwan Cooperative Bank (合庫銀行), the nation's second-largest lender by assets, rejected as speculation newspaper reports that it may sell a 10 percent stake to BNP Paribas SA, France's biggest bank by market value.

"We are in talks with several foreign institutions about forging strategic alliances, but not about selling a stake," Taiwan Cooperative chairman Sean Chen (陳沖) said yesterday, declining to identify any of the institutions.

French newspaper La Tribune yesterday reported that BNP Paribas may buy 10 percent of Taiwan Cooperative for around NT$4 billion (US$120 million).

The Commercial Times reported last week that Taiwan Cooperative was expected to sell a 10 percent stake to BNP Paribas in the second half of next year.

Chen described the reports as speculation, saying: "We have yet to reach any concrete agreement."

Currently, Taiwan Cooperative is collaborating with BNP Paribas in selling insurance products.

As of the end of October, Taiwan Cooperative registered NT$1.95 trillion in total assets, the second largest in the local banking industry.

The bank said in May it was in talks to form a strategic alliance with several foreign financial institutions, including BNP Paribas.

Chen An-hsiung (陳安雄), executive vice president of Taiwan Cooperative, said on May 4 that the bank may sell a stake of less than 20 percent to the foreign partner after the alliance has been set up.

Taiwan Cooperative on Nov. 8 agreed to buy smaller rival Farmers Bank of China (農民銀行) for about NT$16 billion in stock. The deal will take effect on May 1 next year. The government will hold 43 percent of the combined lender.

Shares of Taiwan Cooperative rose 0.5 percent to close at NT$19.60 on the Taiwan Stock Exchange.