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China buzz puts BHP on a high
Bill Condie, Evening Standard16 May 2008
Shares in BHP Billiton soared to a record in Sydney on persistent rumours that a Chinese investor is looking for a stake.
The Australian newspaper reported that the Chinese were in talks to partner with an unnamed pension fund to take a 9% stake.
Under the terms of the proposed deal, the Chinese would take 4.5% of BHP Billiton, while the other half of the stake would be split between the Australian fund and a global private-equity investor, the paper said.
Chief executive Marius Kloppers said last month he had "no doubt" the Chinese "would one day show up on our register".
But the potential emergence of an Aussie fund to back such a move raises political questions.
The Australians have proven prickly in the past over foreign ownership of resource stocks and such an iconic brand as BHP may raise local hackles.
Canberra blocked a bid by Royal Dutch Shell for petrol producer Woodside in 2001.
