A planned merger between Siam General Factoring (SGF) and Advance Finance has been derailed.
A source said the deal's collapse stemmed from SGF's controlling shareholder, Wichai Thongtaeng, turning down a proposal by the Bank of Thailand requiring the firm to pump Bt1 billion (US$25m) into Advance Finance to strengthen its capital fund.
"SGF is a publicly-listed company, so the money injection would have hurt the company's shareholders," the source said yesterday, speaking on condition of anonymity.
Another requirement that Wichai - one of Prime Minister Thaksin Shinawatra's lawyers in his asset-concealment case - could not accept was SGF's major shareholders privately guaranteeing Advance Finance's deposits, he said.
