Skip to: Content
Skip to: Site Navigation
Skip to: Search

October 13, 2008 2:14:24 PM CDT

Learn about Newser Points »

« Back to the grid | Next story »

China to Buy $3B Stake in Blackstone

Posted May 21, 07 7:18 AM CDT in Business 

(Newser) – The Chinese government will buy a 9.9% stake in Blackstone, the US private equity fund that's about to launch its IPO. The $3 billion purchase of nonvoting shares, the first time China has invested its enormous foreign reserves in commercial stock, is meant to exploit a private equity market booming almost as much as China itself.

CEO Stephen Schwarzmann called the sale, at a slight discount from the IPO price, "a historic event that changes the paradigm in global capital flows." The deal is likely to meet political opposition in the US and comes with strings: China must hold its stake for four years and may not invest in other private equity groups until May 2008.

Source Financial Times (UK)

0 comments | Print E-mail | Digg Seed this on Newsvine Add this link to Del.icio.us StumbleUpon

Related Newser Stories

  • Web Biz Alibaba Launching Record IPO in China

    Oct 22, 07 4:24 AM CDT
    Web Biz Alibaba Launching Record IPO in China Alibaba, the business-to-business service that links small and mid-sized Chinese manufacturers to customers around the world, is expected today to announce what will likely be the biggest Internet IPO  in Chinese history. Analysts expect the world's most-visited import/export site to pull in an estimated $1.3 billion from Hong Kong investors, the Wall Street Journal reports. More »

  • KKR Makes IPO Official

    Jul 3, 07 7:34 PM CDT
    KKR Makes IPO Official Undeterred by the possibility of potentially devastatingly tax-law changes, Kohlberg Kravis Roberts firmed up its IPO plans today, filing SEC documents that value the issue at up to $1.25 billion. The private (for now) equity firm said it will list as a partnership, like archrival Blackstone, which went public last month to the tune of more than $4 billion. More »

  • KKR Joins IPO Party

    Jun 22, 07 9:05 AM CDT
    KKR Joins IPO Party Corporate raiders Kohlberg Kravis Roberts & Co. have announced an initial public offering, on the heels of a wildly successful $34B IPO by rival Blackstone yesterday. The mammoth LBO group, whose boss Henry Kravis maintains a well known rivalry with Blackstone's Stephen Schwarzmann, waited to make sure Blackstone swam before making the announcement. More »

  • Blackstone IPO Fetches $4.13B

    Jun 21, 07 5:05 PM CDT
    Blackstone IPO Fetches $4.13B The Blackstone Group went public today, selling 133.3 million shares at $31 and raking in $4.13 billion, the largest American IPO since 2002. The keenly anticipated issue values the private equity firm, founded by Stephen Schwarzman 27 years ago with $400,000, at $33.5 billion; the price bodes well for other buyout specialists. KKR and Carlyle are also considering going public, Bloomberg reports. More »

  • Senate Puts Blackstone on Notice

    Jun 15, 07 12:48 PM CDT
    Senate Puts Blackstone on Notice Less than 2 weeks ahead of Blackstone's IPO, bipartisan legislation introduced in the Senate yesterday threatens to hamper or halt the avidly anticipated stock sale. The private equity behemoth's tax bill would more than double if the measure—under which partnerships like Blackstone would pay the 35% corporate rate rather than the 15% capital gains rate that currently applies—passes. More »

Blackstone CEO Stephen Schwarzman   (New York Magazine)
China's Premier Wen Jiabao, right, shakes hands with Vietnam's President Nguyen Minh Triet during a meeting at Zhongnanhai in Beijing Friday, May 18, 2007. Triet concluded his four-day state visit to...   (Associated Press)
A view of the floor of the New York Stock Exchange late in the trading day in this, April 4, 2007 file photo, in New York. NYSE Euronext Inc., the world's biggest stock market, said Thursday, April 26,...   (Associated Press)
An NYSE Euronext banner hangs over the floor of the New York Stock Exchange, Wednesday, April 4, 2007, in New York. NYSE Euronext shares slipped in their first day of trading Wednesday following the completion...   (Associated Press)
An investor looks at the stock price screen at a stock exchange in Hangzhou, eastern China's Zhejiang province Tuesday, May 8, 2007. Chinese shares surged to a new record high on Tuesday following a weeklong...   (Associated Press)
Investors watch stock movements at a stock exchange in Chengdu, in China's southwest Sichuan province on Friday, April 13, 2007. Chinese stocks fell Friday as investors sold to lock in profits from a...   (Associated Press)
« Prev« Prev | Next »Next » Slideshow
Our editors also recommend:

Chinese Deal For Blackstone

Threads (
1
 of 6)

Tags

China  • business  • private equity  • IPO  • Blackstone Group  • stock  • Stephen Schwarzman


Loading...

Premium Articles from HighBeam

Find more articles like this

Today's Most Popular

Loading...

Other Home Stories