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Government-sponsored investment funds from China and Singapore are believed to be eyeing stock in US retail giant Wal-Mart Stores, US and UK market sources said.
Wal-Mart shares ticked up on Friday following the rumours.
The moves are spurred by "unconfirmed chatter of an Asian investment by a new sovereign investment fund of the Chinese Government and Temasek Holdings", said Paul Foster, options strategist for theflyonthewall.com in Chicago. A trader in London also said the rumour was circulating there. That trader, who declined to be named, said there was speculation that one or both of the Asian funds may buy about US$8 billion ($11.1 billion) of Wal-Mart shares in open-market purchases.
That would represent about a 4 per cent stake based on Wal-Mart's market capitalisation on Friday of about US$179 billion.
"At this point it remains speculation, and we wouldn't be able to comment on it," Wal-Mart spokesman John Simley said. Wal-Mart shares were up 1.4 per cent at US$43.74 on Friday.
- REUTERS
