Banking Update - Merger benefits EIB’s share price

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Following the resignation of STB’s ex-Chairman, Mr. Dang Van Thanh, the media has been mentioning the possibility of a merger between Eximbank (EIB) and Sacombank (STB). Voices from both sides – EIB’s and STB’s Chairmen – also insinuated this possibility. While we recognize that such a merger, if happening at all, cannot occur overnight, we believe it is useful for investors to understand the possible implications to the share prices of both banks were a merger to occur.
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