Stakeholders' Concern

        To most of the stakeholders, the equity purchase of BII raised concerns over its pricing which is more than 4.6 times its book value, above Maybank’s 2.3, and expensive even when compared with Chinese banks that trade between 3.3 and 5.4 book value,  this allowing controlling shareholder, Singapore State owned, Temasek, to make a capital gain of RM 2.6 billion after holding it for nine years, for a 55.7% control of BII. Maybank had agreed to buy to buy 42% stake in BII from Temasek and almost 14% from Kookmin Bank. On the same note, analyst commented that Maybank was also priced more than it should have for the stake in Pakistan’s MCB where it was reported that the price for Pakistan’s MCB was 5.2 times premium over net tangible assets for 20% stakes in MCB. According to a note written by Deutsche Bank, Deutsche Bank believed that the acquisition price is expensive when compared to regional and domestic banking sectors (The Edge Financial Daily, 2008).

http://researchkorner.blogspot.com/2014/01/stakeholders-concern.html