CIC buys a 15% stake in AES

US power company AES will sell a 15% equity stake to China Investment Corp (CIC) for US$1.58 billion, the Wall Street Journal reported. CIC has also signed a letter of intent to purchase a 35% stake in the company's wind power development business for US$571 million, and will also be given one seat on the board of AES. The US company plan to use the money for expansion and acquisition projects, as they expect to need up to US$1.2 billion to complete projects within the next 18 months. AES shareholders were reportedly angered by the announcement because the per-share price, at US$12.60, is less than the firm's recent closing price and the price at which it has bought back stock. In response AES head Paul Hanrahan said he has no intention of increasing CIC's stake beyond 15%.