As Chinese e-commerce giant Alibaba prepares to go public, several international banks are striving to curry favor with the company in order to be part of the IPO. In a new capital-raising deal for Alibaba, Citigroup (NYSE:C) may have earned some good standing with the company by contributing to its goal of raising $8 billion from a group of banks. Could this loan lead to a great new relationship for Citigroup and China?
In the video below, Fool financial analysts Matt Koppenheffer and David Hanson discuss why the bank/investment bank model for large banks like Citigroup can give them the competitive power they need to win large deals like this one.
David Hanson has no position in any stocks mentioned. Matt Koppenheffer owns shares of Morgan Stanley. The Motley Fool owns shares of Citigroup and JPMorgan Chase. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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