OCBC shares drop after announcing bid for HK's Wing Hang Bank

Office workers pass an Oversea-Chinese Banking Corp (OCBC) building in the central business district of Singapore on Jan 6, 2014. OCBC shares fell on Tuesday morning as investors worry it may end up overpaying for its planned acquisition of Hong Kong
Office workers pass an Oversea-Chinese Banking Corp (OCBC) building in the central business district of Singapore on Jan 6, 2014. OCBC shares fell on Tuesday morning as investors worry it may end up overpaying for its planned acquisition of Hong Kong's Wing Hang Bank. -- PHOTO: REUTERS

Shares of Singapore lender OCBC fell on Tuesday morning as investors worry it may end up overpaying for its planned acquisition of Hong Kong's Wing Hang Bank.

OCBC's shares dipped as much as 1.4 per cent to $9.73 on Tuesday, extending a 1.5 per cent loss from the previous day.

Wing Hang shares gained 1 per cent to HK$116.80 in Hong Kong, following a 1.4 per cent drop on Monday.

Both stocks resumed trading after suspensions on Monday.

OCBC Bank said on Monday it has entered into exclusive talks to take over the family-run Wing Hang Bank. The Singapore lender made the announcement in response to news reports late last week and over the weekend that it had made a binding bid for the Hong Kong bank.

The acquisition is likely to be OCBC's biggest purchase.

Wing Hang, which has 70 branches in Hong Kong, Macau and mainland China, has a market value of HK$36.2 billion.