Bear Stearns Cos. is close to a deal with the Chinese investment bank Citic Securities Co. that would give each company a stake in the other and pave the way for business partnerships in both the U.S. and in Asia, the Wall Street Journal reports.
The deal illustrates China’s advancing financial presence and the desire Western firms have to infiltrate the Chinese sector.
Details are not yet determined and it is not a sure deal, but sources told the Wall Street Journal that both Bear Stearns and Citic are investing about $1 billion in each other.
News of the potential deal comes after the press reported last week about Citic’s interest in Bear Stearns, followed by the Chinese investment bank denying the reports later in the week.