Apr 2007 Financial News

SEC keeps eye on RBTT

Apr 19, 2007

THE SECURITIES and Exchange Commission (SEC) yesterday said it is monitoring the stock market to ensure that RBTT Financial Holdings and First Caribbean International Bank (FCIB) investors are not disadvantaged should FCIB acquire RBTT or merge with the local banking giant.

The SEC said it does not have any evidence, so far, of a merger, acquisition or partnership between RBTT and FCIB, the Barbados-based subsidiary of Canada’s CIBC. RBTT and FCIB are listed on regional and local stock exchanges. The SEC made this statement as the prices of RBTT shares on the local stock market dipped yesterday to $33, after increasing from $31 on March 28 to $34 on April 13.

SEC general manager Terrence Clarke told Newsday that speculation about a RBTT/FCIB deal had been circulating for some time, prior to recent confirmation by RBTT that it had been in talks with a third party about a possible combination or partnership.

Clarke recalled that last November, RBTT’s share price increased by 43 percent following unconfirmed reports that the two financial institutions were close to reaching a deal on a merger.

Clarke said the SEC viewed that development as “a disorderly change” in the market and the commission’s mandate is to ensure “orderly change.”

He explained that in response to certain actions taken by the SEC, which he declined to disclose, RBTT issued a statement last November saying that it had not reached an agreement with any other entity with respect to a merger or acquisition.

Clarke added that following that announcement, the speculation died down and the RBTT share price leveled off.

He said the same situation appears to be happening now as the RBTT share price declined to $33 during yesterday’s trading, following last week’s statement about talks with a third party. Deputy Central Bank Governor Joan John yesterday said the bank also has not received information from either RBTT or FCIB about talks between them.

Stockbrokers yesterday said the decline in RBTT share prices meant that the speculation seems to be losing steam and the market is returning to normal.

Trinidad Newsday
Page 8
Thursday April 19, 2007
http://www.newsday.co.tt/business/0,55715.html