Bear Stearns, Citic to invest $1 bln in each other

Discussion in 'Wall St. News' started by ASusilovic, Oct 22, 2007.

  1. 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.
  2. 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.''
  3. 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.
  4. Kazakhstan just around the corner. Lots of oil there ....;=)

  5. Account holders in that region may be better off dealing with the Astana office instead of Beijing.