Bear Stearns and Chinese investment bank Citic Securities are near a deal to invest $1 billion in each other, according to a report in The Wall Street Journal, citing people familiar with the matter. The report said Citic will invest about $1 billion in Bear Stearns and receive securities that will convert over time into a roughly 6% equity stake in the New York-based securities firm. The Beijing-based firm will also have the right to buy a stake of up to 3.9% of Bear Stearns in the public market, for total eventual holdings of no more than 9.9% of its stock, the report said. On the other side, Bear Stearns's $1 billion worth of Citic's debt over time will amount to a 2% stake in the Chinese firm, the report continued, and Bear Stearns will also be given options to buy an additional 5% of the company, exercisable over the course of five years. http://online.wsj.com/article/SB119302614988166878.html?mod=hpp_us_whats_news
Oct. 22 (Bloomberg) -- Bear Stearns Cos. and China's Citic Securities Co. agreed to invest $1 billion in each other as part of a strategic alliance to pool their businesses in Asia. ``This groundbreaking alliance will give Bear Stearns a unique footprint in one of the world's fastest-growing economies,'' Bear Stearns Chief Executive Officer James Cayne said in a statement today. ``Combining our operations in Asia with Citic Securities will greatly benefit Bear Stearns's global client base and generate substantial new revenues.''
Even if you live in a yurt in the northern part of Xinjiang Uygur province, Bear Stearns will be able to get its hands on your money.