CCB to drop Citigroup
by Brian Turner
It is looking more and more likely that China Construction Bank (CCB) will drop Citigroup as an advisor in its initial public offering, which is expected to take place before the end of the year in Hong Kong.
In past weeks, Citigroup has been excluded from meetings planning for the IPO.
Sources close to the deal have indicated that CCB is unhappy with Citigroup because it has failed to follow through on a promise to purchase US$1 billion in shares in the Chinese bank.
However, reports are that Citigroup did not confirm its promise, making it unclear just how serious its offer to invest in CCB was.
If Citigroup is indeed dropped as an advisor to the government-owned bank, it stands to lose fees in excess of US$87 million.
At any rate, the relationship between CCB and Citigroup has been beset with allegations of misconduct, with both Citigroup’s head of China investment banking and the chairman of CCB having departed under suspicion of wrongdoing.
CCB is now believed to be in negotiations with the Bank of America, which is said to have offered to buy a 5 percent stake in CCB for around US$1.2 billion.
Discuss this in the Finance Markets forums
Story link: CCB to drop Citigroup
Add to Bookmarks:
Related financial stories to: CCB to drop Citigroup
- Institutions jockey to replace Citigroup
- Azteca TV alleges irregularities in CitiGroup deal
- Prudential sells Egg to Citigroup
- Citigroup in Wachovia rescue deal
- Second quarter results at Citigroup better than expected
- Citigroup slashes a further 50,000 jobs
- Hundreds of jobs shed at Citigroup
- Citigroup plans further job cuts
- Citigroup poaches star executive from Lloyds TSB
- More banking woes as Citigroup and Goldman Sachs reveal job losses
Previous: « Euro stabilising after referendum falls
Next: Italian minister suggests return of the lira »
Visited 430 times, 2 so far today
