The FINANCIAL — A proposed acquisition of Centurion Bank of Punjab by HDFC Bank, India's No 3 lender, is likely to be valued at Rs100-Rs120 billion ($2.5-$3 billion), the Business Standard said on February 24.
HDFC Bank agreed on February 23 to buy its smaller rival in what would be the country's biggest financial sector buyout, if the all-share deal is approved by shareholders and regulators.
The acquisition would help HDFC extend its reach before a 2009 central bank review that may allow foreign banks to buy Indian lenders.
But a union spokesman said on February 24 they would oppose the merger between the two private banks if it caused job losses, even as nearly a million bank workers prepared for a two-day nationwide strike this week against proposed mergers between state-run banks.
Shares in Centurion Bank ended down more than one per cent at Rs56.4 on February 22, valuing the bank at about $2.63 billion.
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