ICBC freezes talks with Arab investors
(AFP)
Updated: 2005-12-01 09:27

Industrial and Commercial Bank of China (ICBC), the nation's largest lender, has frozen talks with two Arab state investors negotiating for a one billion US dollar stake, according to a press report.

Industrial and Commercial Bank of China, the nation's largest lender, has frozen talks with two Arab state investors negotiating for a one billion US dollar stake, according to a press report. [AFP]

Citing unnamed sources, the Financial Times said the lender, which is considering a 10 billion dollar-plus overseas listing, wants to seal a three billion dollar deal to sell a 10 percent stake to a consortium led by Goldman Sachs before entering detailed discussions with Abu Dhabi and Kuwait's state investment agencies.

ICBC, the largest bank by assets in Asia outside Japan, opened talks with the Middle Eastern investors a few weeks ago, triggering speculation that a deal would be in aid of meeting China's demand for energy resources in the region, the paper said.

However, it is now believed to want to postpone any agreement until next year amid growing concern in Beijing over foreign involvement in the country's financial sector.

This may signal a slowdown in its listing plans, the paper said.

The bank's decision to stagger talks with different groups of investors comes amid a dispute between Chinese authorities over whether foreign institutions, including Bank of America and Royal Bank of Scotland, bought stakes in other "big four" state banks too cheap.