UPDATE 2-KKR, Fubon among bidders for M.Stanley's CICC stake

miércoles 2 de diciembre de 2009 07:12 CET
 

* KKR added to list of private equity bidders - source

* Taiwan's Fubon Financial bidding as well - source

* Auction for CICC stake could fetch more than $1 bln-sources (Adds Fubon sourcing, details, background)

By George Chen

HONG KONG, Dec 2 (Reuters) - Kohlberg Kravis Roberts & Co and Fubon Financial are among the bidders for Morgan Stanley's (MS.N: Cotización) stake in Chinese investment bank CICC, people familiar with the matter said on Wednesday, in a deal that could be worth more than $1 billion.

Fubon (2881.TW: Cotización), Taiwan's No. 5 financial conglomerate, has made no secret about its intention to grow into China, especially now that cross-straits relations are thawing [ID:nTP66235].

When CICC was founded around 14 years ago, Morgan Stanley paid just $37 million for a 34.3 percent piece of the Chinese bank. CICC is now one of the biggest and most successful investment banks in China, led by Levin Zhu, the son of China's influential former Premier Zhu Rongji.

While the stake has been profitable for Morgan Stanley, the New York bank lacks control of management decisions at CICC.

In December 2007, Morgan Stanley signed an agreement with China Fortune Securities, in an effort to attain a Chinese joint venture that gave it more control over management.   Continuación...