State-run fund buys 1% stake in BP
16 April 2008
A state-run investment fund has acquired a 1% share of UK-based oil company BP, worth about US$2 billion, the Wall Street Journal reported. Though the fund's identity has not been disclosed, a person familiar with the situation was cited as saying that the investor is the State Administration of Foreign Exchange (SAFE), which bought a 1.6% stake in French energy firm Total worth US$2.8 billion earlier this month. There is some speculation that SAFE could be acquiring stakes in oil companies as a hedge against rising oil prices, and that the government is allowing state funds to pursue higher-risk investments than in the past in hope of yielding greater returns. In early January, an investment company owned by SAFE was reported to have bought stakes in three of Australia's largest banks.
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