DBS

DBS/Indo Banks: Bank Indonesia will allow foreign and local banks to purchase more than 40% of Indo lenders if they can meet certain requirements under a new bank ownership rule which will likely enact by the end of nxt mth. Under the new requirements, buying banks must be publicly listed and agree to buy contingent convertible bonds from the lender they will acquire. The buyers must also agree not to sell the newly acquired stakes for a certain period and must be committed to help develop the Indonesian economy. Add also that buyers must agree to make the bank it has acquired a public entity within 5 yrs. (DBS could relist Danamon in 5 years if an acquisition is successful)