Standard Chartered ‘not on the market for a £29bn offer’
THE United Arab Emirates’ biggest bank has quashed reports it was eyeing a takeover offer for Standard Chartered.
First Abu Dhabi Bank confirmed that, in the light of speculation, it was “not evaluating a possible offer”.
It is the second time that First Abu Dhabi Bank has denied reports of a bid.
Shares in Standard Chartered fell sharply on the news yesterday.
This was after they jumped on Thursday following reports that the lender was considering reviving the bid once a lock-up period that prevents it from doing so expires.
It was claimed that First Abu Dhabi Bank was considering a £28.9billion bid for London-listed Standard Chartered.
Yesterday it said: “First Abu Dhabi Bank notes the recent press speculation in relation to Standard Chartered and reiterates that it is not evaluating a possible offer for Standard Chartered.”
It had told investors back in December it had been in the early stages of evaluating a possible offer but that such a bid had been abandoned.
Standard Chartered is set to reveal profits for its fourth financial quarter on Thursday.
The lender’s current operations reflect its roots in Empire.
Chartered Bank was founded in 1853 and specialised in India and the Far East. Standard Bank began in 1862 in South Africa. The two merged in 1969.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “Given that Standard Chartered has such a large footprint in emerging markets with its operations in 59 countries, and is highly active across the Middle East, it’s clear why speculation about a First Abu Dhabi Bank takeover reached fever pitch given the opportunities presented.
“However, there are still risks ahead, given that the group has large exposure to commercial real estate debt in China, with related impairment charges chipping away at profit’s full potential.”
Russ Mould, at broker AJ Bell, said firms with exposure to emerging markets have been “out of favour” recently.