Case | HBS Case Collection | August 2009 (Revised March 2011)

Shenzhen Development Bank

by Li Jin, Yuhai Xuan and Xiaobing Bai

Abstract

Weijian Shan, Managing Partner of Newbridge Capital, faces a tough call in regard to his firm's investment in Shenzhen Development Bank, China's fifteenth-largest commercial bank listed on the Shenzhen Stock Exchange. Due to the aggressive lobby of the existing management at the bank, the Shenzhen government didn't receive central government's support on Newbridge's investment and had to back out of the deal with Newbridge. Weijian Shan has to make a choice between two alternatives: 1) Give up pursuing the deal given huge political risk out of his control; 2) Work out an action plan and re-negotiate the deal.

Keywords: Mergers and Acquisitions; Private Equity; Commercial Banking; Investment; Emerging Markets; Business and Government Relations; Banking Industry; China;

Citation:

Jin, Li, Yuhai Xuan, and Xiaobing Bai. "Shenzhen Development Bank." Harvard Business School Case 210-020, August 2009. (Revised March 2011.)