Citigroup to up stake in Pudong Development Bank?

15 March 2007

Citigroup has announced plans to up its stake in Chinese bank Pudong Development Bank (PDB), according to the chief executive of Citigroup China.

Richard Stanley told a Chinese magazine that he "would love to increase our stake in Pudong" and that negotiations with PDB are progressing with a view to securing an increased shareholding sometime later in the year.

Mr Stanley's comments come after the Shanghai Securities News last year reported that Citigroup, which holds a 3.78 stake in the mid-sized bank, is seeking to up its stake to 19.9 per cent by the end of 2008.

The 19.9 per cent stake would keep the bank within government regulations that stipulate that forbid any single foreign owner from owning more than 20 per cent of any Chinese bank.

News of Citigroup's intentions come after Stanley outlined the US giant's plans for expansion, which include upping staff numbers by a third to 4,000 with the firm identifying its commercial banking unit as a chief source of growth in the territory.

However, when contacted about the announcements Shen Si, secretary of the board at PDB, denied knowledge of the deal.

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