CIC eyes stake in power firm AES

China Investment Corporation (CIC), the country's $200-billion sovereign wealth fund, is in talks to take a minority stake in power company AES Corp, the Wall Street Journal said yesterday, citing unnamed sources.

The possible deal is part of wide-ranging discussions aimed at building an alliance between AES and China Investment Corp, the paper said. It said that CIC could also take a significant stake in AES later on.

The paper said that the two companies are also in discussions to set up a joint venture, in which CIC would provide capital to support AES in developing power plants around the globe. The talks are still at a sensitive stage, according to the paper. It said they might not produce a deal.