Nick Goodway: HSBC should take the money and run
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It looks like HSBC could end up with both if its plan to sell its 15.6 per cent stake in China's second-largest insurer Ping An to Thailand's richest man ends up being blocked by the regulators.
HSBC sold the first 3.2 per cent tranche to Charoen Pokphand just over a month ago at HK$59 a share. It agreed to sell the rest at the same price, valuing the whole transaction at $9.4bn (£5.8bn).
Now the Chinese regulator and others are raising questions about how the deal is being funded, with stories that China Development Bank may pull out from providing a bridging loan.
HSBC insists that the deal is still on track and it has no desire to lose face with the Chinese, with whom it has a multitude of other trading links.
But thanks to the global new year stock market rally Ping An shares closed at HK$66.95 on Friday.
That is a 13.5 per cent improvement on the price agreed with Charoen Pokphand. Go on HSBC, take the money and run.
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