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Japan:
Second India-Japan strategic dialogue on economic issues
China:
India-Brazil-South Africa to cooperate in health sector
South Korea:
South Korea Gives US Beef The All Clear
India:
Indian government approves re-structured APDRP
Pakistan:
Restoration of Indo-Pak dialogue to push trade
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India-Brazil-South Africa to cooperate in health sector
Thailand:
Fastest Growth for Thailand Economy in Six Quarters
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Taiwan Enjoy Expanded Trade Surplus
Indonesia:
Central Bank Chief Of Indonesia Detained
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Malaysia economy grows and banking liberalises
Bank of America to announce Chinese bank deal
by Brian TurnerBank of America has agreed to buy a 9 percent stake in China Construction Bank. The $2.5 billion deal will be announced in Beijing on Friday.
In return for this largest foreign investment in the Chinese banking sector, BofA is expected to take one seat on CCB’s board.
It is expected that BofA will invest $550 million more in CCB’s upcoming initial public offering, scheduled for later this year. Bank of America is said to have been looking for further opportunities overseas following the purchase of a 25 percent share of Grupo Financiero Santander Serfin, a Mexican bank, in 2003.
BofA currently generates only 6 percent of its revenues outside the US. CCB has reportedly been searching for a foreign investor for some time, and is believed to have approached several international banks concerning purchasing a stake in the bank, but the search was complicated by the reluctance of foreign companies to buy into Chinese banks over concerns about bad debts and corruption, as well as management issues.
Also at issue has been the large size of investments required, with very little return in terms of having a say in management.
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