Citigroup can up Shanghai bank stake

Shanghai Pudong Development Bank shareholders approved a deal allowing Citigroup to increase its stake in the lender, the South China Morning Post reported. Shareholders also voided a restrictive clause that will now allow the US bank to bid for control of Guangdong Development Bank, a 500-branch lender, for about $3 billion. Richard Stanley, Citigroup's China chief executive officer, noted the relationship "has already proved highly successful. We look forward to expanding our partnership with SPDB." SPDB shareholders had agreed in December to allow Citigroup to raise its stake to the regulatory maximum 19.9% from the 4.62% it has held since 2003.