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Bank inquiry in Australia; some LSE investors urge HKEX to raise bid

GREATER CHINA

* Some investors of London Stock Exchange Group PLC could consider Hong Kong Exchanges & Clearing Ltd.'s offer to acquire the bourse if it increases its £31.6 billion bid by up to 20% and offers more cash, Reuters reported, citing three shareholders and a banking source close to the deal. HKEX's current offer prices LSE's shares at around £83.61 apiece, and consists of 25% in cash. Most investors, however, are looking for an offer of £90 to £100 per share and a higher cash component for them to consider the deal, according to sources.

* BlackRock Inc. acquired 75.57 million shares in HSBC Holdings PLC at HK$60.14 per share, or a total of HK$ 4.55 billion. The acquisition increased BlackRock's shareholding to 7.32% from 6.95%, making it HSBC's largest shareholder and taking over from Ping An Insurance (Group) Co. of China Ltd.

* China Unionpay Co. Ltd. debuted its service in Bosnia and Herzegovina and Chile, leading to a service coverage of 176 countries and regions, Xinhua News Agency reported. The Shanghai-based company said it has issued 120 million cards outside China, with a 40% growth in transaction volume in the first half of the year.

* China's Bank of Communications Co. Ltd. said it redeemed US$1.20 billion of Tier 2 capital bonds due 2024. The bonds will be delisted from the Hong Kong stock exchange on Oct. 11. The bank earlier said that the debt carried a coupon rate of 4.50%.

JAPAN AND KOREA

* Japan's Tokio Marine Holdings Inc. is acquiring high-net-worth specialist Privilege Underwriters Inc. and its subsidiaries, known as Pure Group, for about US$3.1 billion. The Japanese insurance company is making the acquisition through its subsidiary HCC Insurance Holdings Inc., and expects to complete the deal in the first quarter of 2020. Tokio Marine will utilize cash on hand and external financing to fund the acquisition.

* Japan Investment Corp. is nearing the end of discussions to appoint Keisuke Yokoo as its president, The Nikkei reported. Yokoo, who was formerly a president at Mizuho Securities Co. Ltd., will succeed Masaaki Tanaka who left the sovereign wealth fund last year over disagreements on the fund's future.

* South Korea's KB Kookmin Bank and Industrial Bank of Korea are vying for a banking license in Myanmar after the government of the Southeast Asian country said it would grant one by the end of the year, The Korea Times reported. Both lenders have offices in the country, but have yet to receive approvals to operate a bank.

ASEAN

* Bank of Thailand approved the planned merger of TMB Bank PCL and Thanachart Bank PCL, the Daily News reported, citing an announcement. The deal is expected to be competed in 2021.

* KTB Securities (Thailand) PCL expects Thai banks to report an aggregate profit of around 43 billion baht for the third quarter, down 12% year over year and down 7% from the previous quarter, Post Today reported.

* MCIS Insurance Bhd. CEO and Managing Director Prasheem Seebran said the Malaysian company plans to achieve a growth rate target of 40% to 60% for its life insurance products by end-2019, after reaching a 60% growth in the first half of the year, Bernama reported. The company recently rebranded itself as MCIS Life.

* Indonesia's Financial Services Authority plans to create an internal market conduct unit to oversee the implementation of rules and regulations designed to protect clients of nonbank financial companies, Bisnis Indonesia reported.

SOUTH ASIA

* U.S.-based investment fund manager Apollo Global Management Inc. is in talks with Altico Capital India Ltd.'s lenders about a plan to acquire a stake in the troubled real estate-focused lender for up to US$150 million, Mint reported, citing two people aware of the development. Apollo Global Management is also asking the lenders to finance Altico with an additional debt of US$200 million to US$250 million to boost its loan book. The talks are in early stages, and the lenders are open to meeting other investors interested in Altico, the sources said.

* India's Varanium Capital is looking to raise 2 billion rupees as part of its NextGen fund, which will invest in 35 to 40 fintech startups, Mint reported, citing executives at Varanium. The portfolio manager has so far raised 500 million rupees.

* Yes Bank Ltd. CEO Ravneet Gill said Rajat Monga, senior group president and former CFO of the bank, has left the company, the Press Trust of India reported. Gill announced Monga's departure in response to a question about the executive's absence at a press conference.

* United Bank of India decided to put its 15 billion rupees capital raise on hold prior to its merger with Punjab National Bank and Oriental Bank of Commerce, The Economic Times reported. The report added that the Indian government will instead subscribe to the state-owned lender's equity shares through preferential allotment for 16.66 billion rupees.

* Troubled Indian lender Punjab & Maharashtra Co-operative Bank Ltd. appointed Grant Thornton International Ltd. as its forensic auditor at the government's direction, The Economic Times reported, citing four sources with knowledge of the matter. The auditor will look into allegations of 43.55 billion rupees in fraud at the co-op bank made by a former executive.

* The Reserve Bank of India fined United Overseas Bank Ltd. 10 million rupees for failing to comply with requirements relating to governance, specifically section 10B of the Banking Regulation Act, 1949. The central bank did not disclose further details about the violation.

AUSTRALIA AND NEW ZEALAND

* The Australian Competition and Consumer Commission plans to proceed with a fresh inquiry into the banking sector despite a lack of a final scope for the inquiry and approval from Treasurer Josh Frydenberg, The Sydney Morning Herald reported, citing agenda items for a meeting of the regulator's Financial Services Board. The regulator plans to focus the inquiry into challenges faced by new competitors in retail banking, which is dominated by Australia's four biggest banks.

* Pepper Group Ltd.is looking to conduct an IPO of its Australian business in May 2020 and is said to have picked Citigroup Inc., Credit Suisse Group AG and Macquarie Capital to manage the offering, The Australian reported. The report noted that the IPO could be valued at about A$1billion. KKR Capital Markets LLC and Reunion Capital Partners are also said to be involved.

* Rabobank Australia & New Zealand Group will move its corporate head office to Hamilton from the capital city of Wellington beginning early 2021 until January 2022, the lender said in a release. The company said that while it will retain "significant" operations in Wellington, the move will allow it to focus on the specialist food and agribusiness.

IN OTHER PARTS OF THE WORLD

Middle East & Africa: Nigeria hikes banks' loans target; Morocco's BCP acquires Cameroon's BICEC

Europe: 'Problematic points' seen in new Brexit offer; Metro rebound; Sberbank data leak

Latin America: New economy minister for Peru; Vida Camara buys Rigel Peru's portfolios

North America: Former Citigroup trader sues; 2 Ky. banks in deal; DIMIA thresholds increased

Global Insurance: Tokio Marine in $3.1B US deal; Chubb retreat; AmWINS acquisition

Janna Estares, Emily Lai, Jonathan Cheah, Jaekwon Lim and Santibhap Ussavasodhi contributed to this report.

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