U.S. investment house Blackstone Group is reportedly in talks to buy 30 percent of Chinese chemical and plastics maker China National BlueStar (Group) Corp. for $500 million, a Hong Kong newspaper reported.
It would be New York-based Blackstone's first big investment in China since the company announced the Chinese government was spending $3 billion to buy a significant stake in the company's planned initial public offering.
The South China Morning Post said June 20 that Blackstone's interest comes as BlueStar has apparently run into problems with its planned stock offering in Hong Kong later this year, where it hoped to raise $300 million.
The paper said bankers had walked away from the share offering because its financial situation was ``too dire'' to move ahead. It also said talks with Blackstone are in early stages and may not proceed.
Blackstone shares dipped below their IPO of $31 during trading June 26, days after the highly publicized stocks were first offered to investors.
BlueStar makes engineering plastics, including polybutylene terephthalate and polycarbonate, along with PC building block bisphenol A and other chemical products.
Beijing-based BlueStar is part of state-owned ChinaChem Group Corp.