New York maybe the financial capital of the world today, but all eyes are on China in the coming years. Not a day goes by without news of a Western financial institution or company striking a deal with China. The latest deal teams up New York-based investment bank Lehman Brothers with technology giant IBM to create a $180 million private equity fund to take minority stakes in established Chinese companies. Each company would contribute $90 million each. Lehman and IBM will be jumping into a new frontier because investing in private equity minority stakes in Chinese companies is a fairly new practice. But Michael J. Odrich of Lehman Brothers in a New York Times article believes safeguards will be in place to insure a return on investment: "We will actively negotiate shareholder agreements that serve to protect the interests that are relevant to us.” - Gerald Magpily
See Recent TheDeal.com article
See NY Times article
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