Report - Standard Chartered could be takeover target

Bull's Eye

May attract takeover offers should it struggle to turn itself around.

Standard Chartered, the bank whose share price has more than halved in the past two years, may attract takeover offers should it struggle to turn itself around, CLSA said.

Bloomberg News reports that the most likely acquirer for the bank is Singapore’s DBS Group Holdings, which would be able to bolster its presence in cities such as Hong Kong and Singapore, and gain access to markets in Southeast Asia, CLSA analysts Asheefa Sarangi and Lester Lim wrote in a report on Thursday. 

'The bank’s road to recovery will likely be a challenging multiyear journey', the analysts said. The worse the situation gets, 'the more likely it is that a white knight will eventually emerge', they said.

CEO Bill Winters announced plans in November to bolster a bank reeling from losses tied to bad loans after commodity prices slumped and economies from China to India cooled. 

To access the complete Bloomberg News article hit the link below:

Standard Chartered's Woes Could Lead to Takeover, CLSA Says

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