BNP Paribas Prepares To Exit TEDA Stake

Vanessa Doctor

20 September 2009

French banking giant BNP Paribas is disposing of its interest in ABN AMRO TEDA Fund Management in compliance with Chinese mutual fund rules, Reuters reports.

BNP currently owns a 49 per cent stake in the fund. According to unnamed sources cited by the newswire, the sale has won the interest of two yet-to-be-identified western financial groups. The bank had almost sold the stake for $230 million to South African insurer Old Mutual in 2008, but the deal faltered due to the global financial crisis.

Current Chinese mutual fund regulations bar foreign companies from owning more than one fund venture in the country. BNP presently owns three funds in China after it took over Fortis early in the year. Another source told the news service that BNP is looking to exit two of its three funds but has yet to decide which to retain.