Morgan Stanley re-launches stake sale in CICC

Nov. 4, 2009 (China Knowledge) - New York-headquartered financial services provider Morgan Stanley has re-launched its stake sale in China International Capital Corp, the largest investment bank in China, sources reported.

The U.S. company expects to gain more than US$1 billion from the sale of a 34.3% stake in CICC. The deal will help Morgan Stanley to further expand its presence in the Chinese market.

Morgan Stanley, which paid US$37 million for the stake when the Chinese bank was founded 13 years ago, yesterday asked potential buyers to submit indicative first-round bids for the stake sale in CICC. Private equity firms Bain Capital and General Atlantic are among those potential bidders.

Other private equity firms, including TPG Capital and J.C. Flowers, have previously expressed interest in the stake.

In March 2008, Morgan Stanley failed to dispose of the stake because of prices and disagreements with regulators, sources said.

Morgan Stanley hopes to set up a joint-venture securities company with Shanghai-based China Fortune Securities Co, and it expects to have more influence in management of the JV.