Citic's close call with Bear Stearns
JPMorganÆs takeover of Bear Stearns lets Citic off the hook but other bail-out investors may not be so lucky with their commitments to subprime-affected banks.
Citic Securities confirmed yesterday that it would not proceed with its investment in Bear Stearns, allowing it to scrap a deal to buy shares at $120 apiece in a bank which currently trades at $6. But a host of other investors who have bought into Citi, Merrill Lynch, Morgan Stanley and UBS are stuck with paper bought at significantly higher prices than current traded levels.
Citic Securities, which is part of Chinese state-owned conglomerate Citic Group, started talking to US...
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