Seeking to comply with Ministry of Finance orders to consolidate the bloated banking sector, at least three more banks indicated they were seeking merger partners yesterday.
United World Chinese Commercial Bank (世華商銀), the third-largest lender by market value, said it's in merger talks with Taishin International Bank (台新銀行) and others as it pursues consolidation under government orders.
United World has discussed tie-ups with the nation's second largest credit-card lender as well as a number of other banks, said Chen Chien-tzu
"We're at the interested stage," Chen said. "Nothing specific has been decided with any bank."
He denied the details of a merger with Taishin as reported in a Chinese-language newspaper, which said the two banks planned to combine into a new company by next April. The report said Shin Kong Financial Group (新光), which controls Taishin Bank, would take a 30 percent stake in United World.
Taishin also denied a report it plans to merge with United World, saying it's talking to other banks about possible acquisitions.
"The newspaper report wasn't factual," Taishin spokeswoman Julie Chen said.
"Taishin has no imminent takeover or merger plans with United World Chinese Commercial Bank," she said. The bank will continue to talk to other lenders, though it will not disclose names to avoid breaking confidentiality agreements, she said.
The government wants consolidation among the more than 50 banks and 300 credit co-operatives and farmers' and fisherman's associations, to increase efficiency and reduce non-performing loan ratios.
United World is one of 12 state-run banks ordered by the Ministry of Finance to lead the stream-
lining.
So far, the ministry has announced the merger between Taiwan Cooperative Bank (
Asked of his opinion on reports that Taishin would acquire a 30 percent stake of United World and would control the board of the new company, Minister of Finance Yen Ching-chang (
However, he did say the ministry will announce a fourth merger case by the end of May, but "it's absolutely not the pairing of United World and Taishin."
Meanwhile in other merger news, another bank -- Grand Commercial Bank (
Kao stated that the potential local merger partner would be a so-called "new, private" bank.
He said the direction of a potential merger is focusing on a strategic alliance similar to the one between Fubon Commercial Bank (
He added that in any merger, Grand Bank would be the surviving entity. Kao said that from his understanding, foreign banks aren't looking to buy just one bank here, and therefore Grand may first merge with a domestic bank and then a foreign bank, or the other way around.
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