Shanghai Electric (Group) Corp, China's biggest equipment manufacturer, has attracted Shanghai Baosteel Group Corp, Guangdong Zhujiang Investment Co Ltd and Fuxi Investments as among several potential investors that are seeking to buy into the firm.

　　Shanghai Electric, which is using its core assets worth 6.5 billion yuan (US$783.13 million) to seek more capital, said yesterday that the three companies "are included in the more than 100 bidders."

　　The company, which currently has 207 subsidiaries, declined to say how close the three potential investors are to the deal.

　　The government-owned electric group listed its assets on the Shanghai United Assets Equity Exchange on January 10 to seek additional investment. It is expected to eventually float shares on the Hong Kong stock market next year.

　　The company refused to reveal the names of the other bidders, citing confidentiality reasons.

　　Jiang Qiurong, director of the general office of Fuxi Investments, yesterday told Shanghai Daily that the company would not be able to talk about details of the deal.

　　Fuxi Investment is a Shanghai company which is involved in infrastructure and investments and is owned by Zhang Rongkun, who was ranked No. 55 on Chinamoney 100 list, which includes Chinese mainland's richest people, compiled by Rupert Hoogewerf last year.

　　Baosteel, China's biggest steel producer, and Guangdong Zhujiang, a company with assets of more than 10 billion yuan and more than 30 subsidiaries nationwide, both refused to comment on their firms' involvement in the bidding.

　　Shanghai Electric said that scores of domestic investors and overseas firms agreed to confidential terms in their negotiations. The companies include large state-owned enterprises and private companies in the Pearl River area in Guangdong Province, the Yangtze River area, Beijing and Tianjin. Well-known multinational groups, investment companies and fund management firms are also interested in the deal.

　　The negotiations are likely to end on March 2 and a shareholders' meeting will be held "in the following days" in Shanghai, according to Sun Deyi, a Shanghai Electric spokesman.

　　At present, Shanghai Electric owns two listed units, Shanghai Electric Appliances Co and Shanghai Electrical Apparatus Co, on the Shanghai stock market.

　　After capitalization, Shanghai Electric will focus on the production of power generators, electric and mechanical equipment, transport equipment, and environmental protection equipment, shedding other non-core operations.

　　At present, the four core business operations contribute to more than half the company's annual sales.

　　Shanghai Electric expects its annual sales to rise to 45 billion yuan in 2005 and surpass 100 billion yuan by 2010.

　　According to Sun, Shanghai Electric has recently sealed a strategic alliance with the Chinese Academy of Sciences, the country's premier society of scientists.

　　More than 10 projects, covering power station equipment and industry automation, will be launched later this month under the alliance, Sun said, adding the tie-up will serve as a strong technology innovation platform for the firm in future.