Once again it is like joke of the day when people all eye into the merger and spent so much resources. I never like CIMB as they have been merging too much and too fast. However, understand this may be the political reality in Malaysia. Sometimes we just can’t do much like the Southern Bank case years back.
However, to me is a good news where I value MBSB easily RM 3.00 above. RHBCAP fair value at RM 12.00 above. The call off of the plan will initiate us to buy call on both at current level of RM 2.17 and RM 7.70 level. As of CIMB, I will suggest a switch to RHBCap or MBSB rather than them.