Blackstone eyes stake in China's BlueStar

Updated: 2007-07-03 15:08

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US private equity firm Blackstone Group is in talks to buy a $400 million stake in China National BlueStar Group, a State-owned chemical company, the Asia Wall Street Journal reported on Tuesday.

Blackstone, in which a Chinese State investment agency owns a $3 billion stake, aims to buy between 20 and 40 percent of BlueStar, the Journal reported, citing unnamed private equity fund managers.

Market watchers believe Blackstone, which raised $4.1 billion in a New York listing late last month, will have an easier path to making acquisitions in China since the government agency invested in the firm.

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