Malaysia’s CIMB Group is likely to withdrawn from its bid to acquire a 42.13 per cent stake in Bank Thai due to global financial crisis, continue falling in the share price, and unsettle dispute with TPG Newbridge, according to an official involved in the Finance Ministry.

A news source said the ministry’s approval for CIMB Group bid to acquire common shares in Bank Thai at 2.10 baht each may too late due to a sharp fall in assets value, hurt by the global financial crisis.

“We have yet to see if CIMB willing to inject a large amount of cash to acquire Bank Thai common shares from TPG Newbridge and its alliances amid the crisis,” a news source said.

The Financial Institutions Development Fund (FIDF) has declined to comment whether CIMB intended to drop its takeover effort in the bank.

DIDF has signed approval on June 21, 2008 allowing CIMB Group to acquire 2,810 million shares, or 42.13 per cent stake in Bank Thai at 2.10 baht a share.

The contract is valid for 5 months and will be expired by November 2008.

According to agreement, CIMB will inject 5.9 billion baht in capital into Bank Thai and has either choice to acquire another 42.13 per cent stake from TPG Newbridge or let it hold the portion for another 3 years period. CIMB has yet to acquire the rest stakes from retail shareholders at the same price in order to reach the contract terms, a news source said.