September 15, 2011 / 8:27 AM / 6 years ago

China eyes 20 pct in Italy's strategic fund -report

MILAN, Sept 15 (Reuters) - China’s sovereign investment fund could take a stake of up to 20 percent in Italy’s strategic investment fund, Italian daily Il Messaggero said in an unsourced report on Thursday.

The China Investment Corporation could take 10-20 percent in Italy’s strategic fund, which is being set up by the state-controlled holding Cassa Depositi e Prestiti SpA, it said.

The chairman of the CIC, Lou Jiwei, recently met Italy’s Economy Minister Giulio Tremonti, the Bank of Italy, and CDP chiefs during a roadshow in Rome, it said.

Italy’s strategic fund was set up in response to a wave of foreign takeovers of Italian companies, such as jeweller Bulgari and dairy firm Parmalat .

In July, CDP approved the fund’s statutes and an initial 1 billion s ($1.37 billion) capital. The newspaper said the strategic fund became operational on Monday.

The fund is due to take stakes in infrastructure, defence, security, transport, communications and energy companies to support their expansion.

In recent days, there has been talk of emerging economies, such as China, investing in European government bonds.

$1 = 0.731 Euros Writing by Nigel Tutt

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