Mar. 9, 2007 (China Knowledge) – Citigroup Inc. has bought over Taiwanese lender Bank of Overseas Chinese, Dow Jones newswires reported.

According to the report, Citigroup Inc's buyout offer of NT$14 billion (US$425 million) was accepted by the bank and the deal will be formally announced next week.

Shares of the Bank of Overseas Chinese gained 3.17% to close at NT$11.40 on the GRETAI Securities Market yesterday, outperforming a 1.92% increase in the over-the-counter TAISDAQ index.

Citing Dow Jones Newswires, the Chinese-language Commercial Times said yesterday that Citigroup had agreed to acquire the 55-branch lender for between NT$11.6 and NT$11.8 per share, a premium of 4.97% to 6.78% on the Bank of Overseas Chinese's close on Wednesday, the report said.

The Bank of Overseas Chinese was expected to approve the deal in a board meeting on Monday and announce the deal in the afternoon, reports said.