Singapore Fund Invests $106 Million in Petrobas, China Construction Bank

According to a regulatory filing, Singapore state investor Temasek Holdings invested about $106 million in Brazil's Petrobras during the last quarter.

(November 15, 2010) — Singapore’s $144 billion sovereign wealth fund — Temasek Holdings — has reportedly invested roughly $106 million in Brazil’s Petrobras during the last quarter, diversifying its portfolio of US stocks.

Temasek bought 3.2 million American Depository Receipts (ADRs) of Petrobras, a US Securities and Exchange Commission filing showed. According to a report obtained by Reuters, Temasek held about $1.2 billion worth of US-listed securities at the end of September, including small stakes in Apple, Freeport-McMoRan and Yahoo!. As of the end of the third quarter, its investments in 121 US stocks compare to $1.1 billion invested in just 14 stocks at the end of the second quarter, TheStreet.com reported. Temasek’s new positions are almost all under $1 million, which includes a small stake in Bank of America.

Separately, Temasek Holdings has confirmed it will invest an additional $2 billion in China Construction Bank (CCB) by taking up Bank of America’s (BofA) entire entitlement in the rights issue of China’s second-largest lender. By taking over BofA’s rights, Temasek, which already owns about 5.7 per cent of CCB, will invest about 10.3 billion yuan, or $2 billion, in the Chinese lender.



To contact the <em>aiCIO</em> editor of this story: Paula Vasan at <a href='mailto:pvasan@assetinternational.com'>pvasan@assetinternational.com</a>; 646-308-2742

Germany's Largest Utility Focuses on Grids to Attract Pensions

Chief Executive Officer Johannes Teyssen revealed that E.ON wants to raise $20 billion through asset disposals by the end of 2013 to lure pensions looking for steady, inflation-protected returns electricity lines provide.

(November 15, 2010) — E.ON AG is likely shifting its focus on selling power grids in a $20 billion sale to lure funds.

According to Bloomberg, E.ON aims to grow outside of Europe where utilities face stalled demand and levies from governments aiming to close deficits. It will divest $20 billion of assets in order to attract pension funds looking for steady, inflation-protected returns electricity lines offer, the news service revealed.

“Grids need a high level of investment so selling them can help reduce the amount of spending E.ON will have to do in years to come,” Christian Kleindienst, an analyst at UniCredit SpA in Munich, told Bloomberg, without specifying which businesses the company will sell.

E.ON, the world’s largest utility by sales, aims to raise 15 billion euros by the end of 2013, and is considering selling its UK power grid, which often serve as an inflation hedge and an attractive tool for long-term investors.

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To contact the <em>aiCIO</em> editor of this story: Paula Vasan at <a href='mailto:pvasan@assetinternational.com'>pvasan@assetinternational.com</a>; 646-308-2742

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