Page last updated at 16:46 GMT, Friday, 4 April 2008 17:46 UK

China government buys Total stake

Total petrol station
Total is one the world's largest energy firms

France's oil firm Total has said a Chinese state-run fund has acquired part of the firm.

A spokesperson for Total would not name the fund or specify the size of the stake but said it was less than 5% and "not negligible".

According to the Financial Times, the fund bought 1.6% of the French firm.

State-controlled funds, especially from Asia and the Middle East, have faced criticism because of fears strategic assets may end up in foreign hands.

However, such investments have become increasingly attractive, especially for those countries with large amounts of foreign currency.

The Financial Times said the buyer was China's State Administration of Foreign Exchange, the body that manages most of China's $1.65bn foreign exchange reserves.

Merrill Lynch recently announced that it has sold shares worth $4.4bn (2.2bn) to the Singapore government's investment arm.




SEE ALSO
EU in sovereign wealth fund call
27 Feb 08 |  Business
Sovereign funds may face backlash
15 Oct 07 |  Business
Morgan Stanley takes $9.4bn hit
19 Dec 07 |  Business
Singapore takes stake in Merrill
24 Dec 07 |  Business


FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

BBC navigation

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific