Blackstone float raises $4.13 billion
22 Jun 2007
The partial stock market listing of US private equity giant Blackstone, that will see its boss Steve Schwarzman receive a bumper sum, has raised $4.13 billion.
The
13.2-per cent stake in the company at $31 at the higher
end values the private equity firm at about $33.5 billion.
The Chinese State Investment Company had bought a 10-per
cent share in the business for £3 billion in May.
(See: China
buys $3 billion Blackstone stake)
China''s
investment in Blackstone has raised national security
concerns among policy makers in the US. Some US politicians
also wanted to see Blackstone''s float to be delayed to
enable them to introduce a new law to increase the tax
paid by private equity firms. At present PE firms like
Blackstone can use a loophole to pay significantly less
than more typically structured businesses.
Reports
say that Blackstone''s chief executive and co-founder Stephen
Schwarzman will walk away from the float with a 24-per
cent stake in the business worth about $7.7 billion.