Broker's take: Citi 'positive' on OCBC over reportedly dropped Bank Permata bid

CITI Investment Research on Friday sees a "positive" on OCBC, following a report from Bloomberg that Singapore's second-largest bank has decided against making an offer for Bank Permata.

"We see this as positive for the stock as we had previously opined that an Indonesia M&A (merger and acquisition) faces significant challenges," said Citi analyst Robert Kong in a client note.

Bloomberg reported on Friday morning that OCBC has decided against making an offer for Bank Permata. It said this was "despite (OCBC) expressing interest in an earlier stage of the sale process", said Bloomberg, according to people familiar with the matter. Bloomberg reported that OCBC concluded that Bank Permata "wasn't a match after conducting due diligence".