Shenhua could buy 10 pct of Anglo American-report
HONG KONG, April 14 (Reuters) - Coal mining giant China Shenhua Group is seeking a strategic tie-up with Anglo American Plc (AAL.L) ALGJ.J and could buy up to 10 percent in the firm, the South China Morning Post said on Monday.
Citing unnamed sources the paper said Shenhua was seeking close ties with Anglo, which could include taking a stake worth $8.7 billion at current market prices, but the talks were at a very early stage.
A source told the paper that things were moving slowly on both sides and Shenhua was trying to prevent others from moving in. Other Chinese companies have held on-again, off-again talks with Anglo about a stake sale and business development, the paper's sources said, without naming the companies.
Anglo signed a strategic alliance in February with China Development Bank [CHDB.UL] and said it was actively looking for further prospects in China [ID:nL04321743].
The state-owned bank funded a purchase in November 2006 of 1.1 percent of Anglo by China Vision Resources Ltd, the investment vehicle of Chinese billionaire Larry Yung. Yung heads acquisitive Chinese Conglomerate CITIC Pacific Co Ltd (0267.HK).
China Development Bank also bankrolled aluminium giant Chinalco's investment in global mining firm Rio Tinto Plc (RIO.L). Chinalco and Alcoa Inc (AA.N) jointly bought 9 percent of the company for $14 billion.
The paper said Anglo and China Shenhua Group's listed subsidiary China Shenhua Energy Corp (1088.HK)(601088.SS) both declined to comment on its report.
