IBM and Citigroup Join Forces to Bid on Chinese Bank

Includes: C, IBM
by: Miriam Metzinger

Excerpt from our Wall Street Breakfast, a one-page summary of this morning's key market-moving and stock-moving stories:

IBM to join Citigroup bid for Chinese bank stake [Reuters]

Summary: IBM will join forces with Citigroup in a $3 billion bid for China's Guangdong Development Bank, according to anonymous sources. For the past year, Citigroup and France's Societe Generale have been in a fierce competition for the troubled Chinese lender. IBM, along with China Life Insurance Co., would have a 25% stake if Citigroup gains ownership of GDB. Citigroup is bidding for 20% of the company, the maxiumum portion that can be sold to a foreign buyer under Chinese law. IBM's executives did not comment on the report and it is unclear which division will be involved in the bidding war.
Related links: Commentary: Developments in China's Banking SectorCitigroup Seen Winning Bid for $3B Stake in Chinese Bank
Potentially impacted stocks and ETFs: International Business Machines (NYSE:IBM) and Citigroup (NYSE:C)

Seeking Alpha's Wall Street Breakfast summarizes today's key market- and stock-moving news. Receive it by email every weekday morning (free/no spam).

Seeking Alpha is not affiliated with Reuters.