UPDATE 1-Pudong Bank selling shares to China Mobile -report

* Pudong Bank to raise 40 bln yuan in share sale -report

* China Mobile to buy a roughly 20 pct strategic stake

* Fundraising to boost core CAR by 4 percentage points (Adds analyst quote, background)

By Samuel Shen and Jason Subler

SHANGHAI, Feb 26 (Reuters) - Shanghai Pudong Development Bank (600000.SS), part-owned by Citigroup Inc (C.N), will raise about 40 billion yuan ($5.9 billion) by selling a roughly 20 percent strategic stake to China Mobile, a brokerage report said on Friday.

Guotai Junan Securities said in a report that Pudong Bank would sell about 2.2 billion shares to China Mobile at no less than 17.82 yuan each.

It did not specify whether the stake was being sold to Hong Kong-listed China Mobile (0941.HK) or to its parent company.

"The cooperation would help boost Pudong Bank's profitability and is beneficial to the lender," Guotai Junan analyst Wu Yonggang said in the report dated Feb. 25.

Wu expects the fundraising to increase Pudong Bank's core capital adequacy ratio by about four percentage points to above 10 percent, while boosting its capital adequacy ratio to nearly 14 percent.

Pudong Bank said on Friday its shares would be suspended from trade as it plans to take on a strategic investor.

Chinese listed companies would some times brief analysts about major developments ahead of official announcements, but after share trading suspensions.

China International Capital Corp also said in an email to clients that China Mobile will buy up to a 20 percent strategic stake in Pudong Bank for as much as 40 billion yuan. ($1=6.83 yuan) (Additional Reporting by Victoria Bi; Editing by Jacqueline Wong)