AMERICAN investment bank Smith Barney has sold its 20 per cent stake in HG Asia Group to Dutch giant ABN-AMRO Bank, which is considering taking a majority stake in the broker.
'In the coming months, ABN-AMRO Bank, together with HG Asia's shareholders, will be investigating the possibilities of closer co-operation with a view to ABN-AMRO Bank acquiring a majority stake in HG Asia,' ABN-AMRO said last night from Amsterdam.
Smith Barney said it had sold its stake because it was increasing its sales and research activities in competition with HG Asia and had reservations about holding two seats on the board of HG Asia in those circumstances.
The other two shareholders in HG Asia are Guoco Group and the management of HG Asia, each with 40 per cent.
'What we want to do is expand our equity-driven business worldwide and we felt we were missing out in Asia,' said Len Steffen, senior vice-president and general manager with ABN-AMRO in Hong Kong.
'So it's an extension of what we've been doing in Europe, where we bought [British broker] Hoare Govett a few years back. It's part of our global strategy to become a major bank in equity markets.' HG Asia Group was associated with 12 Asian stock exchanges and employed about 390 people, ABN-AMRO said.