CITIC in talks over better price for Bear
6 March 2008
CITIC Group chairman Kong Dan spoke of the need to adjust pricing terms for the cross-investment deal between CITIC Securities and Bear Stearns to account for "risks in the US financial system that haven't been completely resolved," the Wall Street Journal reported. The two firms agreed to invest US$1 billion in one another in October but since then shares in Bear have fallen 34% as a result of the US subprime crsis. CITIC Securities is also struggling, its stock down by more than 40% since October. Kong said the scope of cooperation would not be affected but refused to speculate on how the size of the stakes each firm would take in the other might change, saying that discussions were ongoing. CITIC Group is the parent of CITIC Securities.
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