CITIC Securities may not raise the stake in Bear Stearns

CITIC Securities<600030>, China's largest securities firm, has no plans to raise its stake in Bear Stearns, but just hopes to adjust the prices of the share swap with the U.S. investment bank, said CITIC Group Chairman Kong Dan on Wednesday.

Earlier reports said the two parties were renegotiating on their share swap deal amid a precipitous slump for both shares after last October's signing of an agreement on a cross-investment plan, through which CITIC Securities wanted to raise its stake from 6% to 9.9%.

Kong denied the news, saying that the size might be maintained at 6% while paying less than the previous offer of US$1 billion. "We just need to adjust the prices to reflect the market conditions, so the framework of the agreement will remain basically the same as before."

Sources reported New York-based Bear Stearns was plunged in financial crisis. But CITIC Securities said the transaction is progressing smoothly, and the rumored crisis will not impact its investment plan.