What will DBS use the money for?

With the news of DBSÆs fresh capital-raising exercise, rumours have re-emerged of a possible tie-up with AustraliaÆs Westpac.

Given DBSs extraordinary capital-cushion, observers feel confident a big acquisition is being planned, and Westpac which trades on a price to book of 2.7 times and has a market cap of $13 billion is regarded as the best possible contender.

Westpac derives 93% of its earnings from Australia, while DBS still makes almost all of its money in Singapore. However, the Singapore government, which owns 39.7% of DBS, has been pushing the bank to emulate HSBC and expand its footprint outside its home base.

With this logic in mind, DBS spoke to Westpac last September, and it was rumoured that both sides got close to an agreement. This would have seen Westpac...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222