Temasek close to buying BOC stake (Reuters) Updated: 2005-08-25 08:38
Singapore's state investment agency Temasek Holdings is in the final stages
of a deal to buy a 10 percent stake in Bank of China for $3.1 billion, the
Financial Times reported on Wednesday.
Temasek has demanded warranties against a sudden deterioration in the state
lender's finances, the FT reported on its Web site, citing people close to the
situation.
The FT quoted insiders as saying no deal had yet been reached. It said talks
were advanced but they could still collapse or result in Temasek taking less
than 10 per cent.
Temasek Holdings Pte. Ltd., which manages some $54 billion of assets, has
been acquiring banks in Asia and has stakes in lenders from India, Indonesia and
South Korea.
The firm has signed an agreement to invest to $1 billion in China
Construction Bank, China's third largest lender.
Foreign banks are rushing to get a foothold in China, which is keen to bring
in foreign capital and expertise to a banking sector that boasts $1.5 trillion
in personal savings.
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