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. Last Updated: 07/27/2016

HSBC Extends Offer Period for Republic




LONDON -- Global banking group HSBC Holdings PLC said Monday it had extended the offer period for its $10.3 billion takeover bid for Republic New York Corp. to Nov. 30 and may extend it again as it worked with Republic to complete the deal.


HSBC said in a statement the offer had been extended from Friday. Earlier this month, Republic delayed a shareholders' meeting to vote on the deal to Nov. 30 while it prepared a report into its futures brokerage and its links with U.S. commodities trader Martin Armstrong.


Armstrong, who was charged last month with bilking Japanese investors out of $950 million in a securities fraud scheme, was the largest client of Republic's futures brokerage.


Republic's investigation into its futures brokerage has forced it to delay the merger vote three times. Republic has not been charged in the Armstrong probe. Armstrong said he is innocent and suffered noncriminal trading losses.


HSBC has already extended the offer period once, and it said it may extend the offer again "on one or more occasions" because of the investigation into Republic's futures unit.


"As announced previously, while reserving all rights that it may have under the Transaction Agreement, HSBC continues to work with Republic and Safra Republic toward closing of the Republic merger and the Safra Republic tender/exchange offer in accordance with the Transaction Agreement," HSBC said in a formal statement.


HSBC has not said whether it wants to renegotiate or cancel the deal.