Bear Stearns and Citic to a Joint-venture

The Chinese bank Citic Securities and the American bank Bear Stearns, one of those swept away by the cyclone of subprime mortgages, reached an agreement for a strategic partnership. The agreement provides for an exchange of shares for a billion dollars and the creation of a joint venture in Asia with its representatives in each other's board. Citic Group, a sector investment from the Chinese government, through its subsidiary Citic will make investments in Bear Stearns securities with preferential forty years and that the New York bank may convert into a share of 6%, Citic will also increase its stake to 9.9% . By the U.S. Bear Stearns will acquire a similar proportion of Civic with the additional option to purchase. You will be also a joint venture 50% headquartered in Hong Kong that provide services on the capital markets in Asia through operations consulting on acquisitions and mergers, asset management and venture capital. The news had been announced in recent days by the Deputy Director of the 'Authority of Chinese banking sector supervision, Jiang Dinzhi, who declared that Citic had an interest in investing in Bear Stearns.

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