Post Reply
121-140 of 1413
Excellent choice,me too :)
Good luck.
limkt009 ( Date: 03-Apr-2012 13:54) Posted:
|
I think D05 well planned n microwave too high, its time to adj down below 12.30
sgnewbie ( Date: 03-Apr-2012 09:25) Posted:
|
DBS to maintain dividend payout after Danamon bid
| WRITTEN BY REUTERS |
MONDAY, 02 APRIL 2012 11:40 |
DBS Group Holdings Southeast Asia's biggest bank, will be able to maintain its dividend payout following the US$7.24 billion ($9.08 billion) bid for Indonesia’s Bank Danamon , chief executive Piyush Gupta said on Monday.
Gupta also said the deal can be funded by internal resources as well as debt without any needs for equities raising.
Think they really overpaid. Reminds me of SGX trying to buy ASX at what, 37% premium? and even if it did not meet the aussie govt's resistance, the FA looks bad when combined. DBS and this indobank.. duno what the CEO thinking... rupiah too many zeros... lol
SGX went up like $8-$10. then dropped until now those vested above $8 still under water.
Another example will be OCBC purchased of ING.. price went from $8-$11??? and LS later also. just bear in mind, last yr bear mkt mostly. so quite drastic. so adjust readings accordingly.. lol
DBS going be like that. ride the trend if you will.. lol
By CARINE LEE
Moody's said on Monday it has placed all of DBS Bank's (DBS) ratings on review for downgrade.
'The review of DBS' ratings will evaluate the financial impact of this relatively large acquisition on the bank's creditworthiness,' it said.
The rating actions were prompted by the bank's announcement that it will acquire up to 99 per cent of Indonesia's Bank Danamon for S$9.1 billion.
'DBS Group Holdings - as a holding company - has limited earnings capacity whereas it will have higher leverage ratios after this transaction. Therefore, DBS - as the group's principal earnings contributor - is expected to play a substantial role in supporting the increased debt burden of its parent,' said Moody's.
Moody's said DBS will likely be required to 'upstream higher dividends' to provide the bulk of the funds that its holding company will need to service debt, and to pay dividends on its enlarged share capital base.
'Importantly, the review will also consider Moody's concerns that DBS' changing risk profile over time may be indicating an increased risk tolerance that would be inconsistent with its standalone bank financial strength (BFSR) of B, which maps to a baseline credit assessment (BCA) of aa3,' said Moody's.
On Monday, DBS got halted and closed at $14.18 with zero shares traded.
A gravestone doji occurred. This often signifies a top (the longer the upper shadow, the more bearish the signal).
RSI & MACD are bearish as RSI trend downwards.
Immediate Resistance of DBS: $14.53
Immediate Support of DBS: $13.97
Currently prices are supported by 50 days MA at $13.97.
Since 20/Feb ............. READ MORE
got to go down .
Sell DBS share at cheaper market rate to Temasek and buy 50+% premium price of the indo bank share .
share price to go down.
new shares issuance price only $14.07.
" DBS Group Holdings, Southeast Asia’s biggest bank, has agreed to pay $9.1 billion for Indonesia’s Bank Danamon in shares and cash
DBS said it would issue 439 million new shares to Temasek at $14.07 each. The state investor already owns about 29% of DBS.
----"
sO SHARE go uP OR dOWn ????
UPDATE 1-DBS to pay $7.2 bln for Indonesia's Bank Danamon
(Recasts with details, adds background)
By Saeed Azhar and Kevin Lim
SINGAPORE, April 2 (Reuters) - DBS Group Holdings,Southeast Asia's biggest bank, has agreed to pay S$9.1 billion ($7.24 billion) for Indonesia's Bank Danamon in shares and cash, stumping up a premium of around 52 percent to become the country's fifth-biggest lender.
Singapore-based DBS, which is making the move as part of its goal to become a leading Asia-wide bank, said on Monday it would initially pay S$6.2 billion in shares to buy a 67.37 percent stake from Singapore state investor Temasek Holdings.
It would then buy out Danamon's minority investors for cash, with both the share and cash payments pitched at 7,000 rupiah ($0.77) per Danamon share.
DBS said it would issue 439 million new shares to Temasek at S$14.07 each. The state investor already owns about 29 percent of DBS.
When combined with DBS' existing Indonesian assets, the acquisition would make DBS the country's fifth-largest lender.
In the same statement, DBS said Malaysia's central bank had allowed it to begin talks with a unit of Temasek to buy an effective 14 percent stake in Alliance Financial Group .
These acquisitions would be the first major deals by DBS Chief Executive Piyush Gupta, who took the helm of the Singapore-based lender in late 2009.
The biggest challenge will be persuading investors that DBS has not overpaid, as it did when it bought Hong Kong's Dao Heng Bank more than a decade ago.
Gupta, 52, has spent a large part of his career in India and Southeast Asia - areas where DBS is keen to grow - but he will be tested in Indonesia where rules on foreign bank ownership change frequently.
DBS had record net profit of more than S$3 billion ($2.39 billion) last year.
Credit Suisse and Morgan Stanley are DBS's joint financial advisers, while WongPartnership LLP and Hadiputranto, Hadinoto & Partners are legal advisers. ($1 = 1.2574 Singapore dollars) ($1 = 9144.0000 Indonesian rupiahs) ($1 = 1.2574 Singapore dollars) (Reporting by Saeed Azhar and Kevin Lim Editing by John O'Callaghan and Mark Bendeich)