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China Development Bank may raise stake in Anglo American - report

Sun. October 19, 2008; Posted: 11:02 PM
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BEIJING, Oct 20, 2008 (XFN-ASIA via COMTEX) -- SCHPY | Quote | Chart | News | PowerRating -- China Development Bank (CDB) may raise its stake in Anglo American given the falling value of the mining giroup's share price, the South China Morning Post reported.

"CDB has a stake in Anglo American and it is actively looking at options for that stake. It is looking at increasing the size of the investment given where Anglo American's share price is at the moment," the Hong Kong newspaper quoted an unnamed source as saying.

The newspaper added that CDB could also bring in other investors.

"Alternatively, since it sees itself as a bridge between Anglo American and China, it could bring in other parties to take a stake," a source said.

Anglo American shares in London have fallen nearly 65 pct since May.

Anglo American spokesman James Wyatt-Tilby said CDB has held a stake since late 2006, but he did not comment on the potential purchase of a bigger holding.

In November 2006, CDB lent CITIC Pacific chairman Larry Yung 805 mln usd to buy a 1.13 pct stake in Anglo American, the newspaper noted. Terms of that financing placed ultimate ownership of the stake with CDB, it said.

will.davies@afxasia.com

MMMM

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