Verdict expected soon on GDB bids

The six-member committee tasked with judging the bids for control of Guangdong Development Bank (GDB) passed its views on to Beijing late last week as a final decision draws ever closer, the Wall Street Journal reported. Three consortia, led by Citigroup, Societe Generale and Ping An Insurance respectively, are all looking for an 85% stake in the troubled lender plus management control. Bids were submitted for a second time on August 31. Citigroup led the way in the original round of bidding in December but regulators baulked at its plans to take a 40-45% stake in GDB, far in excess of the 20% cap on foreign ownership. Facing heavy public criticism over foreign investment in the financial sector, the China Banking Regulatory Commission decided against making an exception and asked for bids to be resubmitted.