Bank Danamon slumps 16 pct after Reuters breaks news of right issue

Shares in Indonesia’s fifth-largest bank, PT Bank Danamon, slumped 16 percent on Jan 21 after Reuters reported the $1.2 billion bank planned a rights issue. Reuters learned from sources that Danamon, which is controlled by Singapore state investor Temasek, planned to raise ‘hundreds of millions’ of dollars and named the two banks picked to advise the company — Citi and Morgan Stanley. As part of the cross-border scoop, Reuters secured an analyst comment on the reported plan, which fed into later updates.