facebook
twitter
rss
account
search
search
 

China wealth fund ups Blackstone stake

Oct. 18, 2008 at 9:04 AM   |   Comments

BEIJING, Oct. 18 (UPI) -- China's state-owned sovereign wealth fund has raised its stake in the U.S. investment group Blackstone LP to more than 10 percent, sources say.

The $200 billion fund, China Investment Corp., paid $3 billion to acquire 9.99 percent of Blackstone's shares before its June 2007 initial public offering and now has decided to embark on an agreement to eventually raise its Blackstone stake to 12.5 percent, Xinhua, the state-owned Chinese news agency, reported Saturday.

"The investment exceeds 10 percent," an unnamed CIC source was quoted by China Daily as saying, but it wasn't revealed when the sovereign wealth fund would reach the 12.5 percent limit.

Unlike many private equity firms, Blackstone's assets and liquidity have remained sound during the global financial crisis, but its share price has nevertheless declined from $31 last year to $9. Analysts told Xinhua CIC's buy appeared to be a long-term investment rather than a bailout.

© 2008 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
Apple sells 10 million new iPhones during the first weekend Apple sells 10 million new iPhones during the first weekend
2
Starbucks testing a latte that tastes like beer Starbucks testing a latte that tastes like beer
3
Iran could retool pipeline for Pakistan Iran could retool pipeline for Pakistan
4
Iraq relying on oil wealth from Basra Iraq relying on oil wealth from Basra
5
EU confirms schedule for trilateral gas talks EU confirms schedule for trilateral gas talks
Trending News
Video
x
Feedback