DBS denies merger rumor with BCA, BBCA shares reverse lower

DBS denied reports that PT Bank DBS Indonesia would be merged into PT Bank Central Asia Tbk. A DBS spokesman told The Business Times that the rumor was not true, after the social media speculation helped push BCA shares up more than 7 percent at Wednesday's close to Rp5.275. In Thursday trading, the direction reversed. Data at 11.59 WIB showed BBCA down 4.27 percent, or 225 points, to Rp5.050 per share. The circulating report said DBS Indonesia would be folded into BCA and DBS Indonesia shareholders would receive new BCA shares as compensation. At the time of writing, BCA had not responded. DBS Indonesia is a unit of Singapore-based DBS Group, while BCA is a major private bank on the Indonesia Stock Exchange with the Hartono family as controlling shareholders.