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Last Updated: Thursday, 21 June 2007, 21:53 GMT 22:53 UK
Blackstone float raises $4.13bn
Blackstone chief executive Steve Schwarzman
Blackstone boss Steve Schwarzman is set to receive a bumper sum
The partial stock market listing of US private equity giant Blackstone has raised $4.13bn (2.07bn).

Floating a 13.2% stake in the company, the shares were priced at $31, at the higher end of forecasts, which values the company at about $33.5bn.

The listing comes despite some US politicians calling for it to be delayed, arguing that Blackstone and similar firms should pay more tax.

China's purchase of a large stake in Blackstone has also caused concern.

The Chinese State Investment Company bought a 10% share in the business for 3bn in May.

Tax debate

Some US politicians had called for Blackstone's float to be delayed until they could introduce a new law to increase the amount of tax that such private equity firms have to pay.

At present a loophole allows such companies to pay significantly less than more typically structured businesses.

China's investment in Blackstone has raised national security concerns in Washington.

Blackstone has an interest in the firm that supplies software to the US military, prompting fears about foreign influence over key national assets.

Reports say that Blackstone's chief executive and co-founder Stephen Schwarzman will walk away from the float with a 24% stake in the business worth about $7.7bn.

US eyes private equity tax change
15 Jun 07 |  Business
China buys $3bn Blackstone stake
21 May 07 |  Business
US fund giant in $4bn share float
22 Mar 07 |  Business

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