BEIJING, Nov 05, 2009 (AsiaPulse via COMTEX News Network) -- Global financial services giant
Morgan Stanley is yet again looking to sell its entire holdings
in China International Capital Corp. (CICC), the country's
first and most profitable investment bank, China Daily reported
Thursday.
The U.S. investment bank had asked potential buyers to
submit indicative first-round bids for its 34.3 per cent stake
in CICC, which could worth more than US$1 billion, the
newspaper confirmed with sources in both the U.S.-based
financial advisor and CICC.
The sources said the CICC stake sale was a precursor to
Morgan Stanley setting up another local joint venture and
Chinese regulators would not approve a new joint venture unless
the investment bank sells the CICC stake.
Morgan Stanley is planning to form a joint venture
securities firm with Shanghai-based China Fortune Securities
Co., in which it can have more management say, according to the
newspaper.
Morgan Stanley was the first foreign investment bank to
enter the country in 1995 when it invested US$35 million to
form CICC in partnership with the state-owned China
Construction Bank (SSE;601939).
As China's leading investment bank, CICC has specialized in
sprucing up state-owned firms ahead of initial public
offerings.
(XIC) rw
(C) 2009 Asia Pulse Pte Ltd
