Citigroup Hopes for Chinese Buyout

Citigroup Inc is reported to be in netotiation with China Construction Bank (CCB) to buy a stake in the state-owned lender.

A leading official declared Citigroup has shown "great interest" in the proposal. Deutsche Bank AG is also believed to be interested in buying a stake in the state-owned commercial bank, which retains a high level of bad loans despite last week's 22.5 bln usd recapitalization by China's central bank.

Citigroup is believed to have enlisted the help of former US Treasury secretary Robert Rubin to advise on a potential deal.

It is understood CCB could seek to list shares on both Hong Kong and New York's main boards, as early as the second half of the year.