Fortescue Denies Sovereign Wealth Fund Stake Sale

Post by Neil on November 18, 2008 · Under Business News, Company News ·  

Fortescue Metals Group (FMG) issued a denial on Monday that it was in talks with China Investment Corp (CIC) that would have ultimately led to a stake sale to the Chinese Sovereign Wealth Fund. FMG also denied that it was seeking additional capital for any of its Western Australian mining projects.

Hong Kong’s South China Morning Post had earlier reported on its website, that the $200 billion Sovereign Wealth Fund CIC, was in talks with the Australian miner about taking a possible minority stake in the iron ore miner.

A Fortescue Spokesperson said “”There are no discussions with CIC and Fortescue is not seeking any additional new capital,” The report also suggested that CIC wanted to bring in a strategic partner if talks with the founder of Fotrtescue Andrew Forrest were positive.

Baosteel Group, the mainland’s largest iron and steel maker, and ina Shenhua Energy Co, the country’s largest coal miner, would be among the companies the fund would look to invest with, the report said.

“They’ve looked at this before and now the price is in a zone that suits them,” the SCMP website quoted a source as saying.

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Comments

One Response to “Fortescue Denies Sovereign Wealth Fund Stake Sale”

  1. john alantar on November 19th, 2008 10:30 am

    GET READY FOR A DEPRESSION

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