NEW YORK (
may finally be able to sell its 34.4 percent stake in
China International Capital Corp
China's securities regulator approved China International Capital's plan to change its shareholding structure. The move is one of several regulatory approvals the bank has to get before paring off its stake.
Morgan Stanley has been reportedly trying to sell its stake for $1 billion to a group of investors which include
Kohlberg Kravis Roberts & Co.
According to the report, KKR and TPG would each buy stakes of 11%, while CICC's existing shareholders will scoop up the rest of Morgan Stanley's holdings.
Meanwhile, Morgan Stanley is attempting to partner up for a investment-banking joint venture with
China Fortune Securities Co.
The bank is waiting for regulatory aproval on the deal, which is expected after the transaction with CICC closes.
Morgan Stanley's transaction with CICC could close as soon as this week, depending on regulators, according to market participants.
TPG, KKR and Morgan Stanley declined to comment.
--Written by Maria Woehr in New York.
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