The splurge to merge: HSBC shareholders wary of Midland bid
Article Abstract:
The management of Hong Kong and Shanghai Banking Corp (HSBC) seems more satified than its stockholders as its merger bid with Midland Bank PLC is on the verge of pushing through. The source of shareholder discontent is the fact that depositing the cost of the merger would earn greater revenues in a shorter time than the actual merger will. The unenthusiastic response of shareholders and their general reluctance to agree with HSBC's globalization policy has slowed down the growth in its share prices. With a price-earnings ratio of around eight, HSBC stock is not performing as much as it should.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1992
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Shadow boxing
Article Abstract:
HSBC Holdings PLC has increased its 3.1 billion pounds sterling ($5.6 billion) offer to acquire Midland Bank PLC to 3.9 billion pounds sterling. The offer was made to offset a possible counterbid by Lloyds Bank PLC. HSBC has nowoffered 120 HSBC shares for every 100 Midland shares and 65 pounds sterling of bonds with a cash alternative for the bonds. The new offer brings Midland's value to 4.71 pounds sterling per share compared to 3.78 pounds sterling in April. HSBC has also reset the deadline for accepting the offer from Jul 2, 1992 to Jun 25, 1992.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1992
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Enter a dark horse
Article Abstract:
LLoyd's Bank will contest Hongkong & Shanghai Banking Corp's (HSBC) bid for Britain's Midland Bank on the condition that both would receive equal regulatory treatment. While trying to avoid investigation by the Mergers and Monopolies Commission, Lloyd's Bank has shifted attention away from its true motives and attacked HSBC's goals, claiming that HSBC would filter away British capital in the guise of internationalism.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1992
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