Temasek Holdings, the Singapore government owned investment arm, announced that it would acquire around a 12 percent stake in which international bank?

Difficulty: Easy

Correct Answer: Standard Chartered Plc

Explanation:


Introduction / Context:
Temasek Holdings is a well known investment company owned by the government of Singapore. It frequently makes strategic investments in large global financial institutions. Business awareness questions often test your memory of such prominent deals, because they illustrate cross border capital flows and the rising influence of Asian sovereign investment arms. In this question you are asked to identify the international bank in which Temasek announced it would pick up about a 12 percent stake.


Given Data / Assumptions:

  • Temasek Holdings is acting as Singapore's government owned investment arm.
  • Temasek plans to acquire about 12 percent of an international bank's shares.
  • Options include Deutsche Bank, ABN Amro Bank, HSBC Bank and Standard Chartered Plc.
  • The question is based on a well publicised historical investment decision.


Concept / Approach:
Such questions require recognition of specific facts rather than calculation. The best approach is to recall which bank has strong Asian and emerging market presence and where Temasek has historically been a significant shareholder. Standard Chartered is a British headquartered bank but earns a large share of its profits from Asia and Africa, and it has long had deep links with Singapore. Temasek has been known as a substantial shareholder in Standard Chartered, which makes that bank the logical answer.


Step-by-Step Solution:
Step 1: Note that Deutsche Bank and ABN Amro are European banks with a stronger focus on Europe and investment banking rather than primarily on Asian emerging markets.Step 2: HSBC Bank is a large global bank with a strong presence in Asia, but Temasek is not commonly cited as holding a large 12 percent style stake in HSBC.Step 3: Standard Chartered Plc is a London listed bank whose core franchise is in Asia, Africa and the Middle East, including substantial operations in Singapore and India.Step 4: Temasek has historically been reported as a major shareholder in Standard Chartered, with announcements about taking around a double digit percentage stake.Step 5: Therefore the correct choice among the given options is Standard Chartered Plc.


Verification / Alternative check:
You can cross check by recalling where Standard Chartered is especially strong. The bank has an important listing on the London Stock Exchange but generates much of its revenue from Asia, exactly the region that Singapore based Temasek focuses on. This strategic alignment makes it logical for Temasek to invest heavily there. In contrast, the links between Temasek and the other listed banks are not as widely emphasised in competitive exam material, which confirms that Standard Chartered Plc is the intended answer.


Why Other Options Are Wrong:
Option a, Deutsche Bank, is a major German bank, but Temasek's widely reported strategic stake was not in this institution. Option b, ABN Amro Bank, is a Dutch bank and has had various ownership changes, but the question about a 12 percent stake by Temasek typically refers to Standard Chartered rather than ABN Amro. Option c, HSBC Bank, is very active in Asia but the specific combination of Temasek and a roughly 12 percent stake is most closely associated with Standard Chartered. Hence these alternatives do not match the fact pattern described.


Common Pitfalls:
It is easy to confuse large global banks because they are often mentioned together in news articles and business magazines. Students sometimes guess HSBC simply because it has a strong Asian presence, without recalling the exact shareholder relationship. Another pitfall is to assume that any big European bank mentioned in the news might have received investment from Temasek. To avoid mistakes, try to remember specific pairs such as "Temasek and Standard Chartered", rather than thinking only in general terms about banks and sovereign funds.


Final Answer:
Temasek Holdings announced that it would take about a 12 percent stake in Standard Chartered Plc.

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