Guoco denies plan of acquiring Bank of East Asia

Yet the conglomerate admitted it raised its stake in the bank to 10.06% from 9.98%.

Conglomerate Guoco Group Ltd. on Thursday dismissed speculation it plans to take over Bank of East Asia Ltd. after it boosted its stake in the blue-chip lender to more than 10% last week, and reiterated the stake is just one of its major investments.

Guoco, controlled by Malaysian tycoon Quek Leng Chan, has been accumulating shares in the Hong Kong bank in recent years, becoming the lender's second-largest shareholder after Spanish investment holding company Criteria CaixaCorp SA, and analysts have said the share purchases indicate the investment conglomerate is preparing a takeover.

Guoco said in a filing to the Hong Kong Stock Exchange published Wednesday that it raised its stake in the bank to 10.06% on Friday from 9.98%. The investment company remains the bank's second-largest shareholder after Criteria CaixaCorp following the latest purchase of shares.

Guoco Executive Director Raphael Ding told Dow Jones Newswires on Thursday the company's most recent stake increase merely reflects its view on the lender's potential. Bank of East Asia is Hong Kong's biggest independent local bank by assets and has significant exposure to the Chinese market, with 92 branches on the mainland. The bank has more than 200 branches worldwide.

View the full story in The Wall Street Journal.

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Tags: Guoco Bank of East Asia, Guoco Bank of East Asia takeover, Guoco Bank of East Asia shares