Kuwait May Buy GM Stocks

'We are interested if it is cheap,' Kuwait Investment Authority chief said.

Kuwait Investment Authority, the oil-rich Gulf state's sovereign wealth fund, will take part in General Motors' new stock offering if it is "feasible," the KIA chief said on Oct. 6.

"They have announced the price range. We will look into it, we have to review it and if it is feasible we are interested," managing director Bader al-Saad said on the sidelines of a Gulf finance ministers meeting.

"We are interested if it is cheap," he said, without elaborating on the number of shares the fund may buy.

General Motors on Oct. 3 said it is seeking to raise $13 billion from a new stock offering as part of the auto giant's efforts to break away from government ownership. The initial public offering (IPO), one of the largest in U.S. history, will consist of 365 million shares of common stock, with the estimated price range for the offering of common stock at $26 to $29 per share.

GM will also issue 60 million preferred shares at $50 per share.

KIA runs two government funds estimated at more than $270 billion. Most of its investments are in the United States and Europe.

Copyright Agence France-Presse, 2010

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