Bank Of China, Rothschild Deal Falls Through

[peaceandlove]

Bank Of China, Rothschild Deal Falls Through

APRIL 2, 2009, 6:29 A.M. ET

BEIJING (Dow Jones)--Bank of China Ltd. (3988.HK) said Thursday it has dropped its plan to buy a 20% stake in French private bank La Compagnie Financiere Edmond de Rothschild, the latest sign of China's aversion to investing in western financial institutions amid the global financial crisis.

Bank of China, the country's third largest listed bank by assets, said it dropped the planned EUR236 million investment after the deal failed to win approval from China's banking regulator before the deadline expired.

The two parties extended the deadline to March 31 after the original Dec. 31 cutoff passed without a word from ...

Article: http://www.campaignforliberty.com/wire.php?view=3811

[peaceandlove]

Here is an article that doesn't require a subscription:

Bank of China Drops Rothschild Deal After Deadline (Update3)

By Zhang Dingmin

April 2 (Bloomberg) -- Bank of China Ltd., the world’s third-largest by market value, scrapped a 236 million-euro ($313 million) investment in La Compagnie Financiere Edmond De Rothschild after failing to gain Chinese government approval.

“The agreement has expired and has automatically become invalid,” Bank of China spokesman Wang Zhaowen said in a telephone interview from Beijing, after a second deadline for state approval expired yesterday. “We may in the future seek cooperation in other areas” with the French firm.

China’s government has tightened scrutiny of overseas investments by the nation’s financial companies following losses on stakes in Barclays Plc, Blackstone Group LP and Morgan Stanley. Premier Wen Jiabao last month called for U.S. assurances that the nation’s investment in Treasuries is safe.

Article continues: http://www.bloomberg.com/apps/news?pid=20601080&sid=aTdcQR7kQom4&refer=a%20sia