(24 October 2007 – China) US Bank, Bear Stearns and Chinese CITIC, have agreed to invest $US1 billion ($A1.13 billion) in each other and launch a joint partnership in Hong Kong.Bear Stearns will buy around $US1 billion worth of debt in Beijing-based CITIC. This will convert to a two percent stake in the bank over six years.
A Chinese state owned lender, CITIC, as part of their side of the agreement, will gain a six percent stake in Bear Stearns for the Chinese group’s investment.
There will also be an option for CITIC to buy a further 3.9 percent share of the US investment bank.
James Cayne, chairman and chief executive, Bear Stearns, said that the alliance will give Bear Stearns a unique footprint in one of the world’s fastest growing economies.