Citigroup may be excluded from CCB IPO

Citigroup Inc's investment in China Construction Bank could jeopardize its role as an underwiter of the Chinese bank's US$5bn IPO, the Wall Street Journal reported, citing unnamed people familiar with the matter. In March 2003, when Citigroup was named one of CCB's investment bankers, there was an understanding that Citigroup would become a CCB strategic investor. Last March, the Federal Reserve told Citigroup to delay any major acquisitions until it tightened internal controls and dealt with various regulatory problems at home and abroad. Citigroup CEO Charles Prince met with CCB's chairman Guo Shuqing a few weeks ago and the company is trying to retain its underwriting role without buying a major stake in the company. Both Citigroup and CCB declined comment on the story.