Reuters: Global Markets: Taishin, Changhwa shares jump on report merger could go through

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Taishin, Changhwa shares jump on report merger could go through Feb 20th 2013, 03:10 TAIPEI | Tue Feb 19, 2013 10:10pm EST TAIPEI (Reuters) - Shares of Taishin Financial (2887.TW) and Changhwa Bank (2801.TW) surged to their highest since 2011 on Wednesday after a newspaper reported that a merger between Taishin and its bigger rival could go through after having been stalled for more than six years. The board of Taishin, which paid T$36.6 billion ($1.24 billion) to become Changhwa's biggest shareholder in 2005, is expected to discuss a revised merger plan as soon as Wednesday, the Commercial Times reported. Taishin had planned to merge with Changhwa and remain the surviving entity, but they now plan for Changhwa to be the surviving company, the report said, citing unidentified sources. A Taishin representative declined to comment. A Changhwa executive said Changhwa had not discussed the matter internally. The finance ministry, which controls Changhwa and other state-run banks, said it would hold a briefing later on Wednesday. No further details were given. Taishin faced public opposition over merging with state-run Changhwa on concern that the stake of Changhwa was sold to Taishin below fair prices. Global private equity fund Newbridge Capital NB.UL cut its stake in Taishin last year in part because it was disappointed the merger could not succeed. If completed, the merger would make the new entity Taiwan's third-biggest bank by assets, with T$2.72 trillion ($92.2 billion). As of 0220 GMT, shares of Taishin had risen 6.9 percent, their daily limit, to their highest level since August 2011. Changhwa shares jumped 6 percent to their highest since November 2011. The broader market .TWII was up 0.5 percent. (Reporting by Faith Hung; Editing by Chris Gallagher) Link this Share this Digg this Email Reprints

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