CIC eyes minority stake in US power plant developer

Sovereign-wealth fund China Investment Corp (CIC) may take a minority stake in Virginia-based power-plant developer AES, the Wall Street Journal reported, citing unnamed sources. CIC is reportedly engaged in discussions that could lead to it taking a significant stake in AES, which has a market capitalization of about US$9.5 billion. The sources claimed that a joint venture between the two parties was also being discussed, under which CIC would contribute capital to AES’s plans to develop power plants around the globe. The talks are said to be at a sensitive stage, and may not produce a deal. Both AES and CIC declined to comment. Reuters reported that the unconfirmed news had already led to a rise in US stocks. Shares of AES rose 4.5% and the S&P utilities index gained 1.6%.