Baosteel buys into Aquila, while CIC invests in Canary Wharf

The deep pockets of Chinese acquirers relative to other companies around the world were evident again in two deals announced on Friday. China's largest steel manufacturer, Baosteel Group Corporation, will acquire up to 15% of Perth-based Aquila Resources for $240 million, while state-owned China Investment Corporation will participate in a $1.4 billion bail-out of Canary Wharf developer Songbird.

Baosteel and Aquila inked a memorandum of strategic co-operation and a share subscription agreement allowing Baosteel to buy 43.9 million new shares for A$285.6 million $240 million, or a price of A$6.50 per share. With its investment, state-owned Baosteel has negotiated one directorship on the Aquila board and has nominated Dai Zhihao, a vice-president...