November 14, 2012 / 11:19 AM / 5 years ago

China's CIC in talks to invest in Fonterra dairy fund-WSJ

HONG KONG, Nov 14 (Reuters) - China Investment Corporation (CIC) is in talks to invest in a fund launched by New Zealand’s Fonterra, the world’s largest dairy processor, the Wall Street Journal reported on Wednesday, citing unnamed people with direct knowledge of the plans.

CIC, China’s sovereign wealth fund, is considering an initial investment of less than $100 million, the Journal added.

Fonterra, a co-operative owned by about 10,500 farmers, launched the NZ$525 million ($430 million) fund last month, hoping to lure investors with an expected yield of up to 7 percent. Pricing is slated for Nov. 27.

Fonterra did not immediately return a phone call after business hours requesting a comment on the Journal story. CIC had no comment. ($1 = 1.2204 New Zealand dollars) (Reporting by Elzio Barreto; Additional reporting by Koh Gui Qing in Beijing)

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