EFTA02559972.pdf

From: David Stem Sent: Tuesday, September 25, 2012 9:34 AM To: Jeffrey Epstein Subject: StanChart Bank StanChart stake? Had dinner with Chairman of StanChart with PA and can see him anytime. It says JPM is interested. Good bank for China/Asia and Africa? September 24, 2012 Temasek reconsiders StanChart stake Singapore investment fund Temasek has sounded out potential buyers for =ts £6bn stake in Standard Chartered, potentially reigniting talk of a =akeover of the emerging markets bank. The fund, which is owned by the Singapore government, had been judging =uyer interest for its 18 per cent shareholding in recent months, said =eople close to the situation. Bankers said earlier momentum for a sale fell last month as StanChart's =hares dropped 20 per cent on the day it was accused by a US regulator =f breaching US sanctions on Iran. After settling the dispute with a =340m payment, the bank's share price has rebounded. Temasek became StanChart's biggest single shareholder six years ago, =uying out the 11.5 per cent stake of the Khoo family for a small =ndisclosed discount to its then market value of E2.3bn. The family =ad been the bank's protector since the 1980s, when it had become the =ubject of an unwelcome bid from Lloyds Bank. StanChart, which has its headquarters in the UK but a business focus on =he emerging markets of Asia and the Middle East, is one of the few =lobally active banks to be largely unscathed by the financial crisis. =t has attracted interest from the likes of JPMorgan and Santander, =ccording to bankers. Although private discussions have taken place, =othing has come of them, largely because StanChart's robust valuation =96 its market capitalisation is £35bn — would make it hard to =wallow. StanChart trades at a 1.4 times multiple of book value at a time when =any rivals, particularly in Europe, trade on less than half that. =nalysts said Temasek might be keen to take advantage of the relative =trength and reduce its exposure to financial services, given the =conomic uncertainty. Bankers believe any ambition Temasek might have had to engineer a merger =etween StanChart and another of its investments, Singaporean bank DEIS, =as faded, given the complexities and regulatory hostility to big =anking mergers. Temasek has hired two western bankers — Greg Curl from Bank of America =errill Lynch and John Cryan, former finance director of Swiss bank UBS =96 to help oversee its stakes in businesses in the US and Europe. =eople close to the situation stressed that there were no live =iscussions with any potential buyer. Both Temasek and StanChart =eclined to comment. Temasek signalled a move away from its StanChart stake a year ago when =t issued an innovative convertible bond that would convert into =tanChart shares under some circumstances. The three-year bond, which raised more than $600m, would potentially =have nearly 1 percentage point off the fund's total stake if the =ank's shares rise beyond the prerequisite 27 per cent premium to the =hen share price of £14.29. The shares closed on Monday at £14.81. After the row over sanctions, people close to the bank signalled an =ccelerated shake-up of its board, which was criticised by shareholders =arlier in the year. Temasek withheld support for the re-election of =xecutive directors except chief executive Peter Sands and two =on-executives. EFTA_R1_01720715 EFTA02559972 <?xml version=.0" encoding=TF-8"?> <!DOCTYPE plist PUBLIC "-//Apple//DTD PLIST 1.0//EN" "http://www.apple.com/DTDs/Propertylist-1.0.dtd"> <plist version=.0"> <dict> <key>conversation-idgkey> <integer>231351</integer> <key>date-last-viewed</key> <integer>0</integer> <key>date-received</key> <integer>1348565614</integer> <key>flags</key> <integer>8623750145</integer> <key>gmail-label-ids</key> <array> <integer>6</integer> <integer>2</integer> </array> <key>remote-id</key> <string>247892</string> </dict> </plist> 2 EFTA_R1_01720716 EFTA02559973