CITIC Pac seeks shareholders' nod on bailout plan

HONG KONG (Reuters) - Steel-to-property conglomerate CITIC Pacific Ltd (0267.HK) said it would seek shareholder approval for a $1.5 billion bailout plan, adding that trading in its stock would resume on Wednesday.

Separately, independent financial adviser Anglo Chinese Corporate Finance said in a statement that CITIC Pacific's realised and potential losses from unauthorised foreign exchange contracts had risen to a total of HK$18.6 billion ($2.4 billion) from HK$16.8 billion reported last month,

The adviser recommended that CITIC Pacific shareholders support the rescue proposal at a meeting to be held Dec 19.

CITIC Pacific's state-owned parent agreed in November to buy $1.5 billion worth of convertible bonds from the firm and assume most of its liabilities from foreign exchange deals. [nHKG191448]

The company's shares rose 15.5 percent to close at HK$6.03 on Monday, but it had lost more than half of its market value after reporting in October it had a potential loss of $2 billion from unauthorised bets on volatile forex markets.

Analysts said concerns over the company's profit outlook and corporate governance would continue to dampen investor interest despite the parent's bailout plan.

(US$1=HK$7.8)

(Reporting by Donny Kwok, Editing by Ken Wills)