CITIC Pacific bailout could boost parent’s stake

The parent company of beleaguered CITIC Pacific could take a greater stake in the Hong Kong-listed conglomerate as a part of a planned US$1.5 billion credit agreement, the Wall Street Journal reported. CITIC Pacific disclosed last month that it could lose up to US$2 billion due to unauthorized foreign exchange bets on the Australian dollar. CITIC Pacific has already confirmed that it is in talks with its parent over the potential credit facility. A company spokesperson declined to comment on the talks, saying only that the details had yet to be determined. CITIC Group currently holds a 29.44% stake in CITIC Pacific. Shares in CITIC Pacific have been suspended from trading since October 30 and the company said they will remain suspended until the credit facility issue is resolved.