SHANGHAI Wall Street bank Morgan Stanley (MS.N) may sell its 34.3 percent stake in China International Capital Corp (CICC), China's top investment bank, to four parties including two private equity firms, a state newspaper reported on Wednesday.
Reuters reported in February that Morgan Stanley was in late stage talks to sell its CICC stake to Kohlberg Kravis Roberts & Co KKR.UL and TPG Capital TPG.UL for more than $1 billion.
Citing unidentified sources, China's Securities Times, a state-owned newspaper, said that as well as KKR and TPG, an existing foreign shareholder of CICC and a foreign insurance company are potential buyers of the stake.
CICC has won regulatory approval for Morgan Stanley (MS.N) to sell its stake in CICC, paving the way for the long-planned divestment.
The China Securities Regulatory Commission (CSRC) on November 26 approved CICC's application for the share holding change that involved a stake of more than 5 percent in the company, the regulator said this week.
CSRC did not state the name of the shareholder involved, but in an emailed response to a Reuters query, a CICC spokeswoman said: "In regard to the CSRC's announcement of ownership changes at CICC, we do not deny that it has to do with Morgan Stanley."
(Reporting by Farah Master and Soo Ai Peng; Editing by Dhara Ranasinghe)