MALAYAN BANKING BHD (MAYBANK)
August 7, 2008
KUALA LUMPUR, Aug 7 – THE directors of Malayan Banking Bhd (Maybank) should be held responsible if the PT Bank Internasional Indonesia (BII) deal falls through and RM480 million deposit is forfeited.
Minority Shareholder Watchdog Group (MSWG) said the directors should resign as it was their money, the rakyat’s money. MSWG chief executive officer Abdul Wahab Jaafar Sidek said they were against the deal (for three reasonses)
Number one, they were late (to enter the market), others have already gone in.
Number two is the pricing.
Number three, timing …
Risks have got to be assessed before going into any venture.
He believes Maybank should not get compensation from Bank Negara Malaysia, if the deal fails to go through.
Abdul Wahab, however, agreed that Maybank chief executive officer Datuk Seri Abdul Wahid Omar should be excluded from blame as he came on board after the acquisition was announced.
Maybank trades, Plantation stocks extended their losses yesterday on news of a drop in crude palm oil prices. CPO futures in October was down to 2,730 ringgit per tonne.
Prices have fallen about 2 percent so far following a slide in soy oil prices, a drop in crude oil and worries about a build-up in palm oil supplies. Indonesia and Malaysia, the world’s largest and second largest CPO producers, have agreed to study a scheme to control prices of the commodity after recent price falls hurt producers in both countries.