18 UK bank Standard Chartered (StanChart) could be acquired by a white knight as its reco-very could prove to be “challenging”, according to broker CLSA, which upgraded shares of the Asia-focused len-
18 UK bank Standard Chartered (StanChart) could be acquired by a white knight as its reco-very could prove to be “challenging”, according to broker CLSA, which upgraded shares of the Asia-focused len-der on that possibility.
Singapore’s biggest lender DBS Group would be the most likely buyer, added CLSA in a note to clients dated December 17. StanChart has seen its shares fall below a forward price-to-book value of 0.5 times this week, making it an appealing target.
The lender, which is in the middle of a restructuring under new chief executive officer Bill Winters, has announced a series of moves to restore its profitability, including axing 15,000 jobs and streamlining the bank’s management structure.
“The bank’s road to recovery will likely be a challenging multi-year journey. But the worse the situation gets for StanChart, we believe the more likely it is that a white knight will eventually emerge,” CLSA analysts Asheefa Sara-ngi and Lester Lim wro-te in the note.
