Lower valuations for Centurion Bank of Punjab shareholders
Banking sector Major HDFC bank is in talks with Centurion Bank of Punjab. The news of the possible merger was first reported by Economic Times on 13, Feb, 2008. If the deal is finalised, HDFC bank will become the third biggest bank with a wide network all across the country.
Centurion Bank of Punjab informed the stock exchange that a meeting of the board of directors of the bank will be held on February 23, 2008 to consider a possible merger with HDFC Bank Ltd.
As per the reports, the officials from both banks will meet on Saturday to discuss the deal in details. In an all stock deal, the expected price for one share of Centurion Bank of Punjab could be Rs. 57.
At the current market price, the valuation offered by the deal to Centurion bank shareholders is not very attractive. During the recent bull run the stock touched a high of Rs. 75.
Centurion bank of Punjab closed yesterday with decent gains. In today's trade, the stock touched a high of progress 61.90. The stock however closed 1.5 per cent lower at troop is 56.35. The trading volume was much higher compared to average daily volume.