Skip to: Content
Skip to: Site Navigation
Skip to: Search
SUNDAY, NOVEMBER 8, 2009
| Subscribe to Newser's RSS feeds RSS | Follow Newser on Twitter Twitter


0

China to Buy $3B Stake in Blackstone

Beijing moves onto Wall Street with historic deal

Share

(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.

Blackstone CEO Stephen Schwarzman
Blackstone CEO Stephen Schwarzman   (New York Magazine)
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 May Day national holiday, buoyed by strong interest in real estate and retail shares. (AP...
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 nine-day winning streak amid mounting concern over a stream of pending initial public offerings. (AP Photo/Color China...
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)
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 China on Friday. (AP Photo/Jason Lee, Pool)
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, 2007 that its first-quarter profit more than doubled as more companies sought...
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 of the $14 billion deal that created the first trans-Atlantic stock exchange. (AP Photo/Henny Ray...
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)
« Prev« Prev | Next »Next » Slideshow
OFF THE GRID
11.6.09
Galleon Scandal: Shocked, Shocked by Insider Trading
11.5.09
Rupert Murdoch Is Mad but Cute
0 comments
VIEWING:
 
LEAVE A
COMMENT Comment Policy
Facebook ConnectPost this comment to Facebook?

After connecting you will have the option to post your comment on your Facebook profile.

 

Related Newser Stories

45 Stories

ANALYSIS

Going Public in Bear Market Is Risky Bet for Rosetta Stone

Firm could make less money due to bear market

Apr 16, 09 12:48 PM CDT
(Newser) - Rosetta Stone, the popular language-learning software maker, holds its initial public stock offering today—a risky move in a bear market, Jennifer Collins reports for Marketplace. Rosetta Stone’s profit has quadrupled since 2007, but it could make twice as much by waiting. It’s possible Rosetta needs cash now,... More »

MORE ABOUT:
competition • IPO • software • stock • language • Rosetta Stone • foreign languages

analysis

Private Equity Giants See Big Payday—If They Don't Go Bust

All the major players
have survived so far

Jan 2, 09 12:31 PM CST
(Newser) - None of the major players in the "shadow banking" world of private equity—the likes of Blackstone, Carlyle, and KKR—has yet gone bust, and the guessing game of which one will be first is well under way, reports Newser founder Michael Wolff in Vanity Fair. Don't hold your... More »

MORE ABOUT:
private equity • Blackstone Group • Carlyle Group • KKR • private equity firms

Despite Reforms, Russian Firms Most Likely to Bribe

Survey names Belgium, Canada most graft-free nations

Dec 9, 08 2:50 PM CST
(Newser) - Russian and Chinese companies are most likely to mix business with bribes when traveling abroad, a corruption watchdog found, despite promises from their governments to root out graft. Transparency International, which said the kickback trend points to firms from emerging economic powers, cited the practice’s “damaging impact on... More »

MORE ABOUT:
China • Russia • Belgium • Canada • business • United States • bribe • corruption • Netherlands • graft

OPINION

Schwarzman Weighs In on Market Reforms

Private-equity billionaire says regs should be global, streamlined

Nov 4, 08 10:46 AM CST
(Newser) - With the world in “the worst financial crisis in recent memory,” private-equity billionaire Stephen Schwarzman advocates seizing the opportunity to prevent a repeat. In an op-ed piece in the Wall Street Journal, the Blackstone CEO, who pocketed $677 million from the firm’s IPO last year, calls for... More »

MORE ABOUT:
private equity • Stephen Schwarzman • Blackstone Group • central bank • mortgage backed securities • bailout • financial crisis

 Big Bucks Flock to Beijing 


Aug 9, 08 9:16 AM CDT
(Newser) - The Beijing Olympics are a celebration of sport, for sure, but they are happening in China, which makes them a business opportunity unlike earlier Games. Folks with deep pockets are converging on the capital to wheel and deal, with an eye to the emerging middle-class market of some 300 million... More »

MORE ABOUT:
China • Rupert Murdoch • Coca Cola • business • 2008 Beijing Olympics • capitalism

45 Stories


Chinese Deal For Blackstone

Inside China's investment in Blackstone
Wall Street Journal


Business 
TwitterFollow @Newser on Twitter

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

from our news partners