Saudi Tycoon Alwaleed Buys 1% Stake in GM

He said the allure was 'the global strength of General Motors brand, the relatively attractive offering price, and the company's growth prospects in Brazil and China.'

Prince Alwaleed bin Talal and his Kingdom Holding Co. invested $500 million in General Motors in the IPO last week, the company said on Nov. 23.

Alwaleed and Kingdom took a 1% stake in GM when the automaker returned to the public share markets with a $20 billion plus initial public offering on November 18, Kingdom said.

"The decision of Kingdom Holding Company and Prince Alwaleed to invest in GM was based on the global strength of General Motors brand, the relatively attractive offering price, and the company's growth prospects in Brazil and China," it said.

The statement did not say how much of the GM stake would be held by the prince privately and how much by Saudi-listed Kingdom.

Kingdom, about 95% controlled by Alwaleed, is a major investor in major global companies like Citigroup, News Corp. Apple, and Walt Disney Corp.

It also owns and manages prominent luxury hotels around the world like the Georges V in Paris.

Copyright Agence France-Presse, 2010

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