State-linked lender DBS Group found itself dragged into the NatSteel takeover battle again yesterday as corporate raider Oei Hong Leong charged the bank had 'unexpectedly' pulled out of talks on financing a general offer.
Mr Oei, NatSteel's largest shareholder, is struggling against state-backed 98 Holdings for control of the steelmiller.
In a statement released by his advisers GK Goh Stockbrokers, Mr Oei said he had talked to three financial groups last month about funding for a general offer, including DBS. The tycoon said DBS had 'kindly' issued a term sheet for financing on November 11, which was then revised on November 12 and 14.
'There was a proposal to bring in a joint financier. Subsequently a third bank expressed interest to participate in the possible financing. Unexpectedly, DBS Bank pulled out,' the statement said.
Citing client confidentiality, a DBS spokesman declined to comment on Mr Oei's statement.
Mr Oei claimed that as a consequence of the DBS move, he had been forced to try and mount a conditional offer for NatSteel that would have allowed him access to the company's own cash to partly finance a bid, but regulatory officials have disallowed the scheme.