Repost: Merrill to Buy 51% of Thailand's Phatra for $68 Mln
from Bloomberg Personal Website 06/05/98
Merrill Lynch & Co. said it will buy 51 percent of Phatra Securities Co., one of Thailand's largest investment banks, for as much as $68 million, taking advantage of Asia's economic slump to expand in the region. The biggest U.S. investment bank said it will form a joint venture with Phatra Thanakit Pcl., a Bangkok- based financial services company. Phatra has the biggest research group in Thailand, underwrites and trades securities, and manages money. The acquisition comes as Thailand, once the region's fastest growing economy, suffers its first recession in 30 years after the devaluation of its currency, the baht, July 2. Merrill's purchase requires a law change to permit a foreign company to own a majority of a Thai securities firm, a sign tumbling economies are forcing countries in the region to open their doors to outside competition.
<eom> |
