Two state funds in talks over £500m stake in Rolls-Royce
The Kuwaiti sovereign wealth fund is locked in talks with Derby manufacturer Rolls-Royce around taking a £2.5bn stake in the troubled firm.
According to Sky News, the Kuwaiti Investment Office (KIO) is negotiating with Rolls-Royce as part of a £2.5bn fundraising drive by the manufacturer.
Rolls-Royce is thought to be in talks with the KIO and Singapore’s Government Investment Corporation.
Sky News says the two state funds could acquire up to £250m worth of shares each in Rolls-Royce, which needs to cash to offset the downturn in the aviation sector.
The company could launch a rights issue as early as October 1, say sources.