Citigroup Ponders Hiking Stake in China Bank to 20 pct

Published on:
12 September 2006 at 10:20 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00003265-citigroup-ponders-hiking-stake-in-china-b/

Citigroup is considering raising its stake in China’s third-largest listed lender to as much as 20 percent as global rivals accelerate an investment push, sources close to the situation said on Tuesday.

The world’s largest financial services provider paid $72 million in January 2003 for 4.62 percent of Pudong Development Bank — the most expensive bank on domestic bourses.

But sources told Reuters Citigroup was pondering a larger stake after rivals such as HSBC Holdings Plc. and Bank of America spent billions of dollars buying slices of larger banks.

Doing so could cost Citigroup as much as 5 billion yuan ($617 million) based on Pudong Bank’s current share price, although foreign investors often secure a steep discount.

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Citigroup Ponders Hiking Stake in China Bank to 20 pct

Unknown Author

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