UPDATE 3-Goldman investment boosts China Geely's global hopes

miércoles 23 de septiembre de 2009 06:29 CEST

* Goldman affiliate to buy Geely convertible bonds, warrants

* Goldman could end up owning 15.1 pct of Geely

* Geely parent eyeing Volvo, Opel tie-ups in global drive

* Geely shares spike 26 pct as trade resumes (Adds details, updates share movement, company quote)

By Donny Kwok and Alison Lui

HONG KONG, Sept 23 (Reuters) - Goldman Sachs' (GS.N: Cotización) $334 million investment in Geely Automobile Holdings (0175.HK: Cotización) will boost the Chinese automaker's global ambitions, including a potential bid by its parent for Ford's (F.N: Cotización) Volvo brand.

Shares in Hong Kong-listed Geely spiked 26 percent on Wednesday after the company said it would issue convertible bonds and warrants to an affiliate of Goldman and will use proceeds for capital expenditure, working capital and potential acquisitions.

The addition of Goldman as a major investor could help China's 10th-largest automaker achieve its aspirations to secure global brands and technology from struggling Western rivals, said Yi Junfeng, an analyst with Changjiang Securities.

"It's a wise move for Geely as it can use the money to build up capacity and free up capital for its parent, which has publicly announced its interest in Volvo," said Yi.   Continuación...