New rules proposed by the Securities Commission (SC) could wipe out Malaysian M&A activity, says the chief executive of CIMB, the country's second largest financial services provider.
The rules would increase the shareholder threshold for takeover of a company's assets and liabilities to 75% and may sink the deal completely if more than 10% of shareholders resist outright.
CIMB Groups holdings Bhd chief executive Nazir Razak says there is a danger that M&A activity may disappear, and suggests the plan is just a populist move.
"When people say the higher the threshold, the better it is for minorities, it is very silly. When you set a threshold where there are no deals, how is it good for minorities?" he says.
article & source: The Edge Financial Daily
Tuesday, April 6, 2010
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