Citic's Close Call with Bear Stearns

The unit of a Chinese state-owned conglomerate has shelved a deal to buy Bear Stearns shares at $120 apiece

Citic Securities confirmed yesterday that it would not proceed with its investment in Bear Stearns, allowing it to scrap a deal to buy shares at $120 apiece in a bank which currently trades at $6. But a host of other investors who have bought into Citi, Merrill Lynch, Morgan Stanley and UBS are stuck with paper bought at significantly higher prices than current traded levels.

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