Sometime in March, I analysed how valuable GE Life is to OCBC based on the price that Prudential is paying for AIA. I said (now revised post to take account of the embedded valued -EV – revealed in the just released 2009 annual report) that the value to OCBC of its GE stake (based on the AIA valuation that the Prudential is working on) is S$3.15 share or S$10.5 billion in total. http://atans1.wordpress.com/2010/03/08/ocbc-value-to-be-unlocked-cash-returned-to-shareholders/
But I doubted that the value would be unlocked given that without GE Life OCBC would be only an SME bank its pretensions in private banking and investment banking notwithstanding.
But given the rumours that OCBC is on ANZ Bank’s target list, who knows except the controlling shareholder of OCBC whether value will be unlocked.
Tomorrow I will discuss why DBS should organise a consortium to takeover and dismember OCBC.