Content area
Full Text
Creating a bank called Mega Financial Holding Co. is no easy task. Just ask KPMG International and Goldman, Sachs & Co.
After five months of negotiations, KPMG couldn't provide the kind of valuation Taiwan's state-controlled International Commercial Bank of China thought was fair in its bid to merge with another of the island's largest state-controlled banks, CTB Financial Holdings Co.
So ICBC in late August brought in Goldman Sachs to redo the math.
The result: early next month CTB Financial and CIBC are scheduled to complete a $2.5 billion all-stock merger that appeared close to unraveling because of the valuation dispute. The deal, in tandem with the $172 million acquisition by the two banks of a smaller local insurer, will create one of Taiwan's largest financial services holding companies.
"The final results were fairer ones," said Henry Hwang, senior vice president of ICBC, of Goldman's valuation report....