Asia's Richest Banker May Acquire Rivals After RBI's Rebuff
- Regulator rejected Kotak’s plan to reduce stake to 20 percent
- Share issue of $17 billion would get founder’s stake to target
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A rebuff from the regulator may set Asia’s richest banker Uday Kotak on a $17 billion acquisition trail, as he seeks to meet a year-end deadline to reduce his stake in Kotak Mahindra Bank Ltd. below 20 percent.
Buying another financial firm may be the most palatable way for Kotak to pare his holding, following the Reserve Bank of India’s rejection earlier this month of a preference share sale proposal. If the bank issues about 1.2 trillion rupees ($17 billion) of new stock to back an acquisition, that would effectively dilute the billionaire’s holding below the 20 percent target.