Citigroup is buying a Chinese bank for $426m (€318.7m) and is also said to be in talks to acquire a $600m hedge fund just a day before it unveils details of cost-cutting plans.

Citigroup yesterday acquired Taiwan's Bank of Overseas Chinese for $426m. The deal will go some way to fulfilling chief executive Charles Prince's goal of drawing 60% of its revenues from international markets, an increase from the current level of 45%.