CIC may buy stake in Italian energy firm

Sovereign-wealth fund China Investment Corp (CIC) may buy a 3-5% stake in Italian energy group Enel potentially worth US$1.6 billion, the South China Morning Post reported, citing a report in Italy’s La Stampa. CIC is reported to be interested in buying "a significant stake" in Enel Green Power, the firm’s renewable energy division. Enel hopes to sell up to 49% of the unit to reduce debt, which has increased considerably since it acquired Spanish utility Endesa at the beginning of 2009. Enel is currently engaged in a campaign to boost its capital base by as much as US$11.3 billion between June 1 and June 19. Earlier this week, CIC announced that it would spend US$1.22 billion to increase its stake in Morgan Stanley.