a deal that the deal will aid Blackstone''s investment
in their country, the Chinese government has agreed to
pay $3 billion for a 10-per cent stake in US private equity
will buy the stake through a newly formed state investment
fund and will be part of Blackstone''s $7-billion share
floatation planned for next month.
allowing the Chinese government to tap into the global
private equity boom, the investment will give Blackstone
a natural advantage in Chinese takeover deals, where foreign
companies often struggle to get the government''s approval
when trying to acquire an stake in Chinese companies.
Robert Peston, business editor, BBC, was quoted on the
online edition of the UK broadcaster as saying, "When
the Chinese are buying into private equity every investor
in the world should take note."
news of the deal could raise opposition among US lawmakers,
some of who remain suspicious of China''s growing economic
clout and in 2005, China''s hopes to buy US energy giant
Unocal fell through in the face of fierce political opposition
in the US.
the announcement has come just days ahead of Chinese
vice premier Wu Yi visit to the US.
was recently part of a consortium that launched and then
abandoned plans to launch a takeover bid for UK supermarket