Business

Saudi prince buys 1 percent GM stake

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Published Nov. 23, 2010, 5:52 p.m. ET

Saudi tycoon Prince Alwaleed bin Talal and his Kingdom Holding Co. invested $500 million in General Motors during the US auto giant’s initial public offering last week, the Saudi company said Tuesday.

The investment amounts to a one percent stake in GM, Kingdom said in a statement.

“The decision of Kingdom Holding Company and Prince Alwaleed to invest in GM was based on the global strength of General Motors brand, the relatively attractive offering price, and the company’s growth prospects in Brazil and China,” Kingdom said in the statement.

A Kingdom spokesman was not able to clarify how much of the stake would be held by the prince privately and how much by Kingdom

Kingdom, about 95 percent controlled by Alwaleed, is a major investor in major global companies like Citigroup, Apple, Walt Disney Corp and News Corp., the owner of NewsCore.

Kingdom also owns and manages prominent luxury hotels around the world.