Far Eastern Bank looking for strategic partnership

Far Eastern International Bank (遠東商銀) confirmed yesterday that it was in talks with interested foreign investors on forming a strategic alliance, but declined to comment on a local media report that Shinsei Bank of Japan may have replaced the British banking giant HSBC Ltd as its potential partner.

"We have been in talks with several interested investors to find an ideal partner," Far Eastern Bank spokesman Thomas Chou (周添財) told the Taipei Times in a phone interview yesterday.

However, the bank has not yet inked an agreement, Chou said, adding that its decision would hinge on the price offered and its target partner's development strategy in the Greater China area.

Chou was tightlipped about whether Shinsei was the potential buyer.

The Chinese-language Econo-mic Daily News reported yesterday that Far Eastern may sell a 30 percent stake to the Japanese bank and that the two parties have signed a confidentiality clause.

The local lender, which runs 30 branches nationwide, was earlier reported to be in negotiations with HSBC for an alliance.

The talks, however, collapsed, as the British rival insisted on acquiring a 51 percent controlling stake, while Far Eastern Bank insisted on a bid offer of NT$20 (US$0.62) per share, the report said.

Meanwhile, in response to the news report, Shinsei said in a statement released yesterday: "As we had announced on May 10 ... Jih Sun Financial Holding Co (日盛金控) is at present the only partnership in which we are making a strategic investment in Taiwan."

The Japanese bank, which has been looking for investment targets in Taiwan, spent NT$11.34 billion (US$35.38 million) on a 31.8 percent stake in Jih Sun last month, the nation's 12th-largest financial group by assets.

Far Eastern International shares closed down 1.43 percent at NT$13.80 on the Taiwan Stock Exchange yesterday.