New bids were expected Thursday for Guangdong Development Bank (GDB) from Citigroup and Societe Generale (SocGen), Reuters reported, citing banking sources. In the latest round of this protracted bidding war, both sides are said to be targeting a 20% stake in the bank. As both bidding consortiums want a majority share in debt-ridden GDB, the deal is now widely seen as a gauge of how deep China will let foreign investment penetrate. Having thought it had made a breakthrough with a US$3 billion bid for 85% of GDB including a regulation-busting 40% for itself, Citigroup is now targeting 80%. It has brought China Life into its consortium, with the insurer slated to lead the way by taking a 25% stake. SocGen's bid for 85% is backed by Baosteel and Sinopec, each of which is expected to match SocGen by taking 20%.
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