Bank Muscat sells 81% in HDFC Bank

#1
I am distressed to find this article in today's Economic Times. Link:

http://economictimes.indiatimes.com...ts-stake-in-HDFC-Bank/articleshow/4299962.cms

Possibilities:

(a) BankMuscat in financial trouble and is forced to sell high quality assets. They have been far more aggressive than, say, Oman International Bank or National Bank of Oman) and last year it was ready to become one of Gulf's premier banks. Such aggressive banks have fallen the hardest.

(b) HDFC Bank has hidden problems. BankMuscat, being an insider (Centurian Bank connection), is offloading to get the best price before the rot in HDFC Bank sets in.

If (a) is correct, it is time to nibble into HDFC Bank since a lot of its shares would be lying around, even if BankMuscat had made block deals. If it is (b), HDFC Bank should be a shorting candidate.

Anything going wrong with HDFC Bank or Bank Muscat? Kindly share your views.
 

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