Chinese bank Citic is negotiating for a larger stake in Bear Stearns because of the sharp decline in the US investment bank’s share price, reports the Daily Telegraph. Citic agreed to invest about $1bn in Bear in October, receiving securities that would convert into about a 6% stake over time. It also gained the rights to buy up to 3.9% in the open market, taking its eventual holding to no more than 9.9%. But since the deal was announced Oct 22, Bear’s share price has fallen by a third from about $116 to $77.80 Wednesday, prompting Citic, which is investing in Bear through its Citic Securities brokerage arm, to demand a return to negotiations.
