Citigroup subsidiary Associates First Capital Corp will replace private equity firm Carlyle in a consortium bid led by the US bank for an 85% stake in Guangdong Development Bank (GDB), the Wall Street Journal reported. Sources close to Carlyle said the company found the deal "less interesting" as it would only get a 5% stake in GDB. However, Citigroup's inclusion of Associates First Capital in the bid could create regulatory problems. The bank itself plans to take the maximum permitted 20% stake in GDB and it is unclear how the regulators would respond to one of Citigroup's wholly owned units taking another 5%. The Citigroup consortium, which has put in a US$3 billion bid for an equity stake plus management control in the troubled Chinese lender, faces competition from groups led by French bank Societe Generale SA and domestic insurance firm Ping An.