Despite its’ highest offer, it lost (do you ever think EON Capital has any chance since the beginning anyway?) to not a better competitor but to a government-backed entity. Nowhere in the globe can you see a business company able to beat a government especially when politic and business exists within an area with such a grey area. You might not realize it but the money used by Malaysia’s state pension fund Employees Provident Fund (EPF) to force its’ body on the RHB belongs to the members who contributed to the fund. No doubt the clear winner is Utama Banking Group (KLSE: UBG, stock-code 6831) who walks away with billions of dollars to the bank.

Now that EON Capital lost the bid, it better start thinking and preparing of a defensive plan since it might be a target of a takeover. Business Times thinks so when it quoted some analysts who think the seventh largest bank might become a M&A target. EON Capital’s values are its’ 130 EON Bank branches nationwide and its’ monopoly in car loans section especially the national cars controlled by Proton Holdings Bhd (KLSE: PROTON, stock-code : 5304).

It’s major shareholder, DRB-HICOM Berhad (KLSE: DRBHCOM, stock-code : 1619) is said to be eager to cash out and received the approval from Malaysia’s central bank, Bank Negara, recently to do so. DRB-HICOM which holds about 20% of EON Capital is in talks with US private equity firm Newbridge Capital. EPF also has indicated its’ interest to sell its’ 8.4 percent stake in EON Capital.

There’s also a possibility that EPF might use RHB Capital as the vehicle to reverse takeover EON Capital. And when that happens, it will be interested to see if there’re any other challengers who is big and powerful enough to give EPF a lesson (which I doubt so for obvious reason). With its’ clean-bill, EON Capital’s consolation would probably be the option of asking a higher price for its stake.