Shares of Ta Chong Bank plunged after potential buyers of the bank had walked away from a possible acquisition.
Two potential buyers — Fubon Financial Holding and Yuanta Financial Holding — walked away from the acquisition deal after they completed due diligence of Ta Chong Bank.
“To my knowledge, the two potential buyers were not happy with Ta Chong's asking price of around NT$17 per share,” Miao said. “Compared with Ta Chong Bank's share price, the NT$17 price tag is too high.”
“With the global financial markets still under pressure amid lingering concerns over the European debt problems, the asking price made Ta Chong seem very expensive,” Miao said.
Ta Chong Bank shares had been riding high recently on speculation since Fubon Financial and Yuanta Financial emerged as potential buyers.
Miao said many investors have started worrying that if Fubon Financial and Yuanta Financial do not go for the deal, it would be hard for Ta Chong to find other buyers since few have expressed interest in the acquisition.
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