US investment bank Goldman Sachs Group Inc (NYSE:GS) is currently the top contender to buy most of the USD1.5bn (EUR1.1bn) stake in China’s Huarong Asset Management Corp that is offered for sale ahead of a 2014 IPO, two sources told the Financial Times.
Morgan Stanley (NYSE:MS) and Germany’s Deutsche Bank AG (ETR:DBK) have also held discussions with Huarong over potentially investing in it, the informed people added. One unnamed banker told the paper that a deal is not likely to be sealed before December.
Huarong and the other three bad loan managers established in 1998 by the Chinese state had made attractive returns following the stimulus programme introduced by the government in 2008, bankers have told the FT.
None of the parties wished to comment when contacted by the paper.