Wednesday, March 26, 2008

Morgan Stanley shelves sale of 34.3% stake in CICC

Morgan Stanley, has shelved the plan to sell its 34.3% stakes in mainland brokerage China International Capital Corp (CICC), sources reported.

Interested buyers such as TPG, J.C. Flowers & Co., Bain Capital LLC, and some global private capital management firms, gave an offer of merely US$500 million, largely lower than the estimated US$1 billion, the report said, adding that the lower-than-expected bid comes partly as a result of the sub-prime crisis.

The move threatens Morgan Stanley's plan for a mainland venture with Fortune Securities, as foreign investment banks are not allowed to own stakes in two domestic investment banks, according to sources.

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