Shares in Standard Chartered fall five per cent after First Abu Dhabi quashes hopes of £28bn take-over deal
First Abu Dhabi Bank (FAB), the United Arab Emirates’ biggest lender, said it was not currently evaluating an offer for Britain’s Standard Chartered, the second time it has quashed reports of an imminent bid.
News of the potential offer first came on 5 January, when FAB said it had considered a bid for London-listed Standard Chartered but was no longer doing so.
StanChart’s shares fell nearly five per cent early on Friday following the statement, having risen 11 per cent the day before after Bloomberg News reported that the Abu Dhabi lender was considering reviving the bid once a lock-up period that prevents it immediately doing so expires.
“First Abu Dhabi Bank PJSC notes the recent press speculation in relation to Standard Chartered and re-iterates that it is not evaluating a possible offer for Standard Chartered,” the lender said in Friday’s statement.
FAB was considering offering $30bn to $35bn, the Bloomberg report said.
StanChart, which has for decades been the subject of takeover rumours without a deal ever materialising, had a market value of nearly $27bn based on Thursday’s closing price.
FAB in its statement said that it and related parties reserve “the right to announce an offer or possible offer for the company or make or participate in an offer or possible offer for the company,” within six months of the date of this announcement.
Reuters