CITIC to invest $1B in Bear Stearns, form alliance
Bear Stearns Cos, an investment bank battered by the mortgage market slump, and China's CITIC Securities Co said on Monday they will take investment stakes in each other and form a broad strategic alliance.
CITIC will invest $1 billion in Bear Stearns and receive 40-year trust securities that would convert into about 6 percent of the equity in the New York-based bank.
Bear Stearns plans to buy $1 billion of CITIC debt that would over time amount to a 2 percent stake in the Beijing-based firm.
(Reporting by Joseph A. Giannone)
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