| Govt mulling Citigroup bid for Guangdong Development Bank |
SHANGHAI, Sept. 27 (AP) -- China's Cabinet is considering a plan to restructure Guangdong Development Bank, including an offer by Citigroup Inc. and other investors to pay 24.1 billion yuan (US$3 billion; €2.4 billion) for the troubled south China lender, a report said Wednesday.
Citigroup's bid was among three submitted by a group in charge of restructuring the bank to the State Council, or Cabinet, for consideration last week, the state-run newspaper China Securities Journal said, citing an unnamed source.
A decision on the plan is still pending, it said.
Guangdong Development Bank is the target of a takeover battle between Citigroup, France's Societe General SA and Ping An Insurance (Group) Co. of China Ltd. for the rare chance to take managerial control of a Chinese bank.
A decision on the deal had been expected last spring but was reportedly was delayed by resistance among some officials to making an exception in China's rules limiting foreign investors to maximum stakes of 20 percent in any Chinese bank, with total foreign investment in a bank capped at 25 percent.
According to the report, Societe General's group is offering 2.35 billion yuan (US$297 million; €233.95 million) while Ping An's bid totals 2.26 billion yuan (US$286 million; €225 million).
If its bid is successful, Citigroup would have a 40 percent to 45 percent stake in the mid-sized Chinese bank, well above the current limit of 20 percent for a single foreign investor or 25 percent for total foreign investments in a single Chinese bank.
Citigroup has refused comment on reports regarding its offer for the bank.
The report did not say when a final decision was likely.
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