Wednesday, December 19, 2007

foreign capital will shore up US financial companies balance sheet

--Numerous financial-services firms have been raising capital to deal with the ongoing credit crunch. In recent weeks, Abu Dhabi's sovereign-wealth fund invested $7.5 billion in Citigroup Inc. and an investment arm of Singapore's government has put $9.72 billion into UBS AG. --China Investment Corp. will be acquiring up to a 9.9% stake in Morgan Stanley through buying equity units that covert into common stock. CIC, which has some $200 billion in asset, bought a $3 billion stake in Blackstone Group as part of the U.S. private-equity firm's June initial public offering.

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