Cash-strapped Gome looks for investors

Gome Electrical Appliances Holdings Ltd, China's largest electronics retailer, has confirmed what was widely known to punters on the Hong Kong stock market - the company needs money and is looking for investors.

The Beijing-based company said in a stock exchange statement that it was in negotiations with a number of potential investors, but did not provide details. "No binding agreement has been entered into," the statement said.

Of course, there has been more than one version of market talks about the company's money raising plan. But all the rumors have focused on Bain Capital LLC, Kohlberg Kravis Roberts & Co, and Warburg Pincus LLC's Warburg Pincus Asia, which are tipped as the most likely buyers of Gome's up to a 20 percent stake in a proposed new share issue.