Danamon Deal Priced to Fail Over Singapore Bank Clash: Real M&A

PT Bank Danamon Indonesia is trading at the biggest discount to any pending takeover offer in Asia, signaling arbitragers aren’t convinced that Singapore and Jakarta will resolve differences over bank access anytime soon.

DBS Group Holdings Ltd.’s $6.85 billion proposal to buy Danamon is in limbo as the Singaporean bank awaits regulatory approval from Indonesia. While new rules governing ownership of Indonesian lenders offer DBS a path to full control, Danamon’s stock closed 15 percent below the bid yesterday, indicating traders who profit from acquisitions have less faith in this transaction closing than any other pending deal greater than $1 billion in Asia, according to data compiled by Bloomberg.