What Citigroup assets would HSBC be interested in? "We have a clear strategy to develop our business with a primary focus on emerging markets, and that means Asia, the Middle East and Latin America," Bloomberg quoted Green as saying in an interview at the
Confederation of British Industry conference in London Monday. "We will not acquire things that do not fit in with our strategy. Where something fits," he said, HSBC would look at it.
While its purchase of U.S. credit finance company Household International Inc. in 2002 for $15.3 billion resulted in a big drag on earnings because of the assumption of risky debt, HSBC has instead redirected its strategy of expanding in emerging markets lately. The London-based bank acquired an 89% stake in Bank of Ekonomi of Indonesia for $607.5 million in October. Meanwhile, the company made a strong bid for a majority stake in Korea Exchange Bank but eventually pulled out of its offer fearing the bank's troubled assets in the growing global economic crisis. - Gerald Magpily
Citigroup Inc.'s loss could be HSBC Holdings plc's gain. The struggling New York-based bank received a capital injection of $20 billion from the U.S. government -- nearly the same amount as its market cap of $20.5 billion as of market close on Nov. 21 -- and will likely accelerate any plans of divestitures to raise much needed cash. Bloomberg reported on Monday that HSBC chairman Stephen Green said his company would certainly be interested in purchasing the "right assets" of Citigroup. 
