East Asian Bank takeover rumors of Li's family holding position in jeopardy

In the last three trading days, the Bank of East Asia (00023.HK) stock price lumpy cloud.　　November 11-12th two trading days, the sudden volume of East Asia rose nearly 18%, 13th, then slightly down 3.7%, but the closing price is still higher than before the 13.3%.　　It all started with rumors of an East Asian takeover. In recent days, Hong Kong's family of East Asian banks, the company's second largest shareholder, the Malaysian consortium, the group launched a takeover, at present, the country Hao holding about 8% East Asian equity.　　However, the Parties reported that 12th, East Asia also issued a clarification announcement.　　For the country Hao acquisition of the future of East Asia, institutions are not optimistic. Citigroup said today that the acquisition will not be successful unless it offers a full takeover of East Asia at a hefty premium.　　Citi believes this will be a "protracted war" and will not end the battle soon.　　Wanguo co-director Zheng told this newspaper that East Asia to clarify the rumors, can only prove that the success of the event is not necessarily very large, and he thought that the possibility of the country Hao to negotiate acquisitions is positive, East Asian shares will remain in the short term by the impact of the acquisition of the country Hao.　　Stock price volatility Citigroup noted that East Asia's share price soared over the past two days, mainly as a result of the cover story of the Hong Kong media "one weekly". The report quoted the Li family source as saying that the group of people, such as scattered sand a plate, any investment "gu", that the loss of East Asia management is not a pity, and chairman David Li did not ask the people to help. The report also said that the country Hao had before the East Asian shareholders, to identify candidates to become the bank's Non-executive director, indicating that its shares are "systematic deployment."　　At present, the Li family's control of East Asian equity added up to about 14%, and scattered in the hands of many members of the Li clan.　　Analysis by the industry, the Bank of East Asia 9.04% of the Spanish consortium criteria Caixa, as well as the holding of nearly 5% of the BOC Hong Kong, will not be sold to the country Hao, Zheng also said that the country Hao another route of acquisition may be, through the purchase of tradable shares overweight in East Asia. If the country Hao in the market increase in East Asia, the purpose is to take control of East Asia one day, is hostile to buy. If these major shareholders do not want to sell shares, the country Hao can only buy chips from other shareholders, so the market volatility is also normal. But it does not rule out the other shareholders of the Bank of East Asia, by rumoured to spur stock prices up, forcing the country's less than 9% per cent to pay higher stakes in the stock market.　　In the future, East Asian management could also use the rising share price for equity financing and expand equity to increase the difficulty of acquisitions.　　Haitong Securities (Hong Kong) Investment Advisory Vice President Guo Jiayao to this newspaper that the BOC Hong Kong in the Bank of East Asia accounted for 5%, although not big, but also a larger shareholder, so can get the nod of BOC, the possibility of a higher acquisition of the country Hao.　　In this connection, the newspaper contacted the Chinese Bank of Hong Kong, said the bank for hearsay no comment. Guo believes that the country Hao acquisition of East Asia's conjecture is not groundless. After selling Dao Heng Bank's controlling stake to DBS Bank, Guo Hao is carrying huge sums of money in his hands, while investing in a moreFor silence, and investment in the banking sector has always been a more familiar area, so the possibility of acquiring another bank is greater. At present, the main family bank is "eyeing" in Hong Kong, "it is rare to buy now."　　He stressed that the current family bank in Hong Kong, such as East Asia, Yong Heng, innovation and the new big banks, East Asia is the largest, business is also relatively perfect, and because of the development prospects of its mainland business, it is normal for people to be optimistic about.　　Zheng that the East Asian share price is a major reason for the move is that the current East Asian circulation is not much, easy to be hype. Major shareholder "Gu each" Hong Kong media quoted sources said, the country Hao is engaged in a team, specializing in the acquisition of East Asia.　　The report also said that the National Hao Group has commissioned the international search company Spencer Stuart recruit suitable candidates to join the team, but did not disclose the size of the team. In fact, Zeng, director of the MBA program at the City University of Hong Kong, said in the 5 days before the bank's share price rose on 11th that "the state-Hao group declared an increase in East Asian bank shares to more than 8% per cent, and that an increase of 1% would be the largest single major shareholder, so the "He ironic," the past year, the country Hao increased the news of East Asia every once in a while, every time the country Hao increased the news of East Asia, East Asia, the price of speculation for a while, then there is no later, the lack of stamina. The people who chased the goods in the sizzling period soon regretted it.　　According to the HKEx, China has increased its stake in the Bank of East Asia 4 times in a row this year, bringing its shares from 5.02% to 8.01% from January 22 to October 30. He noted that Guo Hao as a hostile buyer, will only take advantage of the low buy, and in the hostile takeover, every time the announcement of overweight, the stock price fried up, hostile buyers are likely to take advantage of high reduction, the first to earn a little premium, while pushing down the stock price, such as small shareholders lose patience to sell, In this way, as long as the country Hao inhaled East Asian stocks to a key position, you can gain control of East Asian equity. "Guo Hao, by increasing the Bank of East Asia, can challenge the Li family's controlling power and return to earn the share price." "According to J.P. Morgan's September report, in fact, the country Hao in East Asian shares in the time of HK $15-25, has continued to absorb the shares." JPMorgan noted that East Asia's June 2009 agreement with the Spanish shareholder criteria could increase East Asia to no more than 20%, and that the alliance could withstand any hostile takeover by third parties.　　The Criteria now hold 9.85% per cent of East Asia. In this respect, there is an analysis of the industry, the Li clan of East Asian banks obviously inadequate control, only need to enter into a "gentlemen's agreement" with the criteria to protect foreign enemies, but the agreement also shows that if there are other consortia holding the bank more than 20%, the Li clan's holding position in East Asia will