DBS

DBS: Yesterday, Bank Danamon's shares jumped 11% on speculation of DBS deal revival. Back in Jul this year, DBS dropped the $6.5b Bank Danamon bid after failing to win control. According to a Bernstein note, if DBS were allowed to go ahead and wanted to, it may pay significantly cheaper price with the rupiah weakness and improved DBS share price. ie. if DBS re-offered at same price of 7,000 rupiah/shr, it would save $3.3b on deal. House notes the strategic rationale for deal remains.