Institutions jockey to replace Citigroup

| June 6, 2005 | 0 Comments
Institutions jockey to replace Citigroup

In the wake of Citigroup’s fall from grace as an advisor and potential underwriter of China Construction Bank’s upcoming initial public offering, set for later this year in Hong Kong, other institutions appear to be jockeying to get into position to replace Citigroup.

Even though some have pointed out that there has been no official move by CCB to remove Citigroup from the deal and that even if it does so, it might not be inclined to replace Citigroup, several international investment firms were thought to have held weekend meetings to firm up plans for approaching CCB in hopes of gaining a place at the table.

Meanwhile Morgan Stanley, the other underwriter in the CCB IPO, along with its partner, China International Capital Corp., are expected to try to convince CCB not to replace Citigroup at all. This move would be an attempt to retain a larger share of banking fees, possibly worth up to $175 million, for themselves.

Meanwhile, Bank of America is expected to pursue its offer to buy a more than $1 billion stake in CCB in the wake of Citigroup’s failure to do so.

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