SINGAPORE (Reuters)—OCBC, Singapore's second-biggest bank, said on Tuesday [July 15] it would not increase its offer for Wing Hang Ltd., even as U.S. hedge fund manager Elliott Management Corp. took a near 8 percent stake in the Hong Kong lender.
Oversea-Chinese Banking Group (OCBC), which made a $4.95 billion bid earlier this year for Wing Hang, has already gained over 50 percent of the Hong Kong lender, but needs 90 percent to delist Wing Hang's shares from the market.
The deal is intended to give the Singapore lender a much sought-after gateway to the Greater China region.
Elliot, which was founded by billionaire Paul Singer, has been buying shares to put pressure on OCBC to sweeten the deal for minority shareholders, Mizuho Securities said in a research note last week.
Bankers for OCBC said in a regulatory filing that the offer price for Wing Hang shares would remain at HK$125 ($16.13) per share. OCBC's offer will close on July 29.
Bank of America Merrill Lynch and JPMorgan are advising OCBC.