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Text size [+][-]  Tuesday February 9 2010GLOBAL EDITION

Considered view
04 Mar 2009 20:24

Citi’s carnival

Context News

Mexican opposition lawmakers plan to propose a bill that may force Citigroup to give up control of Banamex after the US government said it will take a 36% stake.

Under the draft published on March 3 in the official Senate gazette, if a foreign government has a stake in a foreign company that owns a Mexican bank, the foreign firm would have to reduce its ownership in the Mexican bank to less than 50% within 30 days. Senators from the opposition Institutional Revolutionary Party, or PRI, plan to propose the bill.

Citigroup bought Banamex in 2001 for $12.5bn.

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At the very least, the country’s biggest private bank may be of assistance. Fresh from a big merger at home, Itau is in better shape than US and European banks. Buying Banamex from Citi would fulfil its ambitions to create a regional powerhouse - and bolster Citi’s capital.

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More stories by:  Rob Cox






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