SINGAPORE Oct 30 Three of the biggest U.S.
private equity firms have held preliminary talks about selling
minority stakes to China's giant Social Security Fund, the
Financial Times said on Tuesday.
The fund, which had 460 billion renminbi ($61.5 billion) in
assets at the end of June, held discussions during the summer
with the Carlyle Group [CYL.UL], Kohlberg, Kravis, Roberts & Co
[KKR.UL] and TPG, formerly known as Texas Pacific Group, the
report said, citing people familiar with the negotiations.
It said negotiations would focus on the possibility that
the Chinese fund would take a stake of up to 9.9 percent in one
of the U.S. firms.
The newspaper said negotiations between the U.S. firms and
the Chinese fund have largely stalled since summer, reflecting
the Chinese reaction to China Investment Corp's minority
investment in U.S. private equity firm Blackstone Group (BX.N).
It said the fall in Backstone's share price from $31 since
its listing in June had left Chinese investors leery about
similar deals. Blackstone shares ended trade at $25.50 on
An official in the overseas investment bureau of the
Chinese fund declined comment, saying he was unaware of such
talks, the newspaper said.
China's Social Security Fund, a national social security
fund of last resort, has been allowed to invest abroad since
May 1, 2006, the Financial Times said.
(Editing by Kim Coghill; Asiadesk +65-68703821)