BUZZ-CICC's shares hit 5-week high on plans for share-swap acquisition of two rivals

Reuters12-18 10:19
BUZZ-CICC's shares hit 5-week high on plans for share-swap acquisition of two rivals

** Hong Kong-listed shares of China International Capital Corp (CICC) 3908.HK jump 7.1% to HK$20.3, their highest level since November 13

** Shanghai-listed stock 601995.SS surges 10% to 38.38 yuan, its highest point since Oct 30

** Chinese bank CICC unveiled plans on Wednesday to buy two smaller rivals in a share-swap deal worth about $16 billion, as Beijing strives to build globally competitive investment banks via industry consolidation

** State-owned CICC said it would take over Dongxing Securities 601198.SS and Cinda Securities 601059.SS by issuing 3 billion China-listed shares at 36.91 yuan each in exchange for all outstanding shares of Dongxing and Cinda

** Shares of Dongxing and Cinda rise 10% and 8.4%, respectively

** YTD, CICC Hong Kong stock up 53.7%, Shanghai-listed shares up 9.8%

(Reporting by Donny Kwok)

((donny.kwok@thomsonreuters.com))

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