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20-05-2014, 08:02 PM
GE is the Lion King - a record closing of 20.46 - stock has been on a 1 way ticket for a while.
Roadside sources attributed the persistent strength on speculation that OCBC may attempt to privatise GE in order to upstream excess capital at the insurer to the group level in order to mitigate the pressure on the CAR ratio post its ambitious takeover plans at Wing Hang Bank.
However, a mate of mine who has been a long term shareholder of GE thinks otherwise. My mate mentioned that GE previously indicate to shareholders during AGM that excess capital are necessary for the stability of the insurer.
Anyway, can excess capital at a insurance unit be upstreamed to bank level and shared around? Will the costs of privatising outweigh benefits of excess capital?
GG need to be educated...
Odd Lots Vested
GG
Roadside sources attributed the persistent strength on speculation that OCBC may attempt to privatise GE in order to upstream excess capital at the insurer to the group level in order to mitigate the pressure on the CAR ratio post its ambitious takeover plans at Wing Hang Bank.
However, a mate of mine who has been a long term shareholder of GE thinks otherwise. My mate mentioned that GE previously indicate to shareholders during AGM that excess capital are necessary for the stability of the insurer.
Anyway, can excess capital at a insurance unit be upstreamed to bank level and shared around? Will the costs of privatising outweigh benefits of excess capital?
GG need to be educated...
Odd Lots Vested
GG