WSJ: Morgan Stanley Short-Lists CICC Bidders

NEW YORK (Reuters) – Morgan Stanley (MS.N) has shortlisted bidders including five U.S. private-equity firms and Taiwan’s Fubon Financial Holding Co Ltd (2881.TW) in the sale of its stake in China International Capital Corp, the Wall Street Journal reported on Tuesday, citing people familiar with the situation.

Bain Capital LLC, Carlyle Group, General Atlantic LLC, Kohlberg Kravis Roberts & Co (KKR.AS) and TPG Capital made the list of bidders whose first-round indicative offers for Morgan Stanley’s 34.3 percent stake were considered attractive enough to be allowed to conduct due diligence on the Chinese investment bank, the paper said.

One strategic buyer — Taiwan’s Fubon Financial — was also selected to conduct due diligence, the paper said.

The deal could fetch around $1 billion, the paper said.

Morgan Stanley paid just $37 million for its piece of CICC when the Chinese bank was founded 13 years ago.

CICC is one of the most profitable investment banks in China. In March 2008, Morgan Stanley failed to sell the stake due to price and disagreements with regulators, unnamed sources close to the deal told Reuters at the time.

Morgan Stanley declined comment. (Reporting by Megan Davies, editing by Gerald E. McCormick)