State-own Korea Development Bank (KDB) on Monday has filed a letter of intent to buy the entire 47.6 percent stake in Siam City Bank Plc (SCIB) at 33 baht a share from the Financial Institutions Development Fund (FIDF), people involved in the matter reported.
He said two of the potential bidders, Hong Leong Bank Berhad from Malaysia and a mutual fund from Europe, announced they had pulled out of the competition, leaving KDB for dog-eat-dog fight with local bank Thanachart.

“The median price is 32 baht to 33 baht per share, but the winner price depends on KDB’s decision of how much it is willing to pay more,” the news source said.

Siam City Bank is Thailand 7th largest lender with 413 billion baht in assets and 400 branches across the country.

The news source reported KDB has tried and failed for several time in the past to acquire a major stake in Siam City Bank. It does not want to follow the same thread for this time.

KDB chairman Min Euoo Sung has flown to Thailand himself to discuss the deal with the Bank of Thailand and the Finance Minister.

The bank offers around $850 million for the entire 47.6 percent stake, which holds by FIDF in Siam City Bank.

The acquisition is part of KDB buying plans of two minor banks in Southeast Asia so far for 2010 in its effort to become one of Asia’s largest lenders.