Citic Securities, which is owned by the Citic group, a Chinese government-owned conglomerate, will buy $1 billion worth of 40-year convertible trust preferred securities in Bear Stearns that will convert to about 6% of Bear Stearns' outstanding shares. The conversion price is pegged to the closing price on five trading days up to and including October 19. Citic could potentially increase the stake to 9.9% though no details of this have been provided.
Bear Stearns will acquire a similar stake in Citic for...
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