GUANGZHOU, China, Nov. 16 (UPI) -- A consortium led by Citigroup Inc. was named Thursday as preferred bidder for Guangdong Development Bank, a struggling lender in southern China.
The Citigroup consortium agreed to pay $3.1 billion for 85.59 percent of GDB, which runs 501 branches across China, the Financial Times reported Thursday.
The big New York bank will 20 percent of GDB and its partners will hold remaining shares: IBM with 4.74 percent; State Grid, a Chinese utility, and China Life, the mainland's biggest insurer, each with 20 percent; Citic Trust with 12.85 percent; and Puhua Investment with 8 percent.
Although Citigroup only holds a 20-percent stake in GDB, it is expected to assume operational control.
Thursday's announcement marks a defeat for Societe Generale, the French bank, and its partners, which include Baosteel and Sinopec. Ping An, a local insurance company, had also sought to win GDB.
