Shareholders of conglomerate CITIC Pacific have approved a rescue package for the company after it lost US$2.4 billion in bad foreign exchange bets on the Australian dollar, the Wall Street Journal reported. Shareholders approved the issue of US$1.5 billion in convertible bonds to CITIC Group, CITIC Pacific’s parent. CITIC Group will raise its stake in the company to 57.6%, from its current 29.4%. CITIC Pacific Chairman Larry Yung called the bond issue "the best option we have at this moment." CITIC Pacific’s parent had earlier provided it with a US$1.5 billion standby loan.
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