The new Indonesian government's first foray into the equity markets got off to a bad start yesterday November 4, with a poorly handled and confusing block sale in Bank Danamon. As a result of the divestment, Singapore government investment agency Temasek increased its stake from 62% to 72% and Indonesian investment agency, PT Perusahaan Pengelola Aset Negara PPA, saw its stake drop from 20.5% to 10.5%. UBS and Danareksa handled the sale.
While Temasek will undoubtedly consider the result a success, this was not the scenario envisaged the night before when a fully marketed equity offering was launched after the stock market's close. At this point, the deal was...
