Citigroup pitches for Guangdong
20 December 2005
Citigroup has made an offer of around US$1.5 billion for an 80% stake in Guangdong Development Bank, the Financial Times reported. Other groups are also believed to have bid similar amounts, including a consortium led by Chinese insurer Ping An and including the Dutch bank ABN Amro, and France's Societe Generale. Citigroup is thought to have offered the highest bid, but it has also attached conditions to the offer to ensure that it has full control over the bank, which may discourage Chinese authorities. Beijing has allowed an exception to foreign-ownership rules in the banking sector because of the bank's urgent need of funds.
