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Morgan Nears Sale of Stake in CICC

Morgan Stanley is reportedly close to selling its stake in one of China's top investment banks to private-equity firms Kohlberg Kravis Roberts and TPG Capital.

NEW YORK (

TheStreet

) --

Morgan Stanley

(MS) - Get Report

is reportedly close to selling its stake in one of China's top investment banks to private-equity firms Kohlberg Kravis Roberts and TPG Capital.

Morgan Stanley's stake in China International Capital Corp. is valued at more than $1 billion, the

Wall Street Journal

reports.

KKR and TPG will split evenly the 34.3% stake currently owned by Morgan Stanley. However, the terms could change as the deal hasn't yet been formally signed and requires approval from the Chinese government.

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KKR's Henry Kravis and TPG's David Bonderman, founding partners of their firms, are both likely to join an expanded board of CICC, people familiar with the situation told the

Journal

.

Morgan Stanley's stake sale in CICC would free it up to pursue its longtime ambition of entering into a new Chinese securities venture over which it can exercise greater influence, the

Journal

adds.

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