By Farhan Sharif
Jan. 4 (Bloomberg) -- MCB Bank Ltd., Pakistan's biggest by market value, said its deal to acquire Royal Bank of Scotland Plc's local unit lapsed because of a dispute over depositing shares as security.
"We disagreed on the requirement that we deposit the sponsor's shares because the regulator didn't inform us about this requirement at the start of this deal," Ali Munir, chief financial officer of MCB Bank said in a telephone interview from Lahore today. MCB does not plan to participate if RBS shares are offered for bidding again, he said.
MCB Bank had agreed in August to acquire a 99.4 percent stake in RBS Pakistan for about $87 million to increase branches and its expertise in financial transactions.
MCB Bank's shares, which rose 92 percent last year, fell 1.5 percent to 216.50 rupees at 12:07 p.m. on the Karachi Stock Exchange. RBS Pakistan fell 5.6 percent to 17 rupees.
Syed Wasimuddin, chief spokesman for the State Bank of Pakistan, the central bank, refused to comment on why the transaction lapsed.
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