Citic Pacific bond issue gets backing
20-12-2008
Shareholders of investment firm, Citic Pacific, have approved an 11.6 billion dollar convertible bond issue to its parent company, Citic Group. This means Citic Group will raise its stake in Citic Pacific to 57.6 percent. The parent company will also absorb massive losses -- potentially amounting to 18.6 billion dollars -- incurred from unauthorized currency bets taken by Citic Pacific. Ahead of the vote, taken at an extraordinary general meeting, Citic Pacific Chairman, Larry Yung, had told reporters that the bond issue was the 'best option available' to the company.
