Wednesday, June 22, 2005

Red Storm Rising
If you can hear a piano fall
You can hear me coming down the hall
--The White Stripes

Is China marching down your hall?

Yes, it is.

The Chinese have yet again attempted to secure a resource-based company:
Chinese Oil Giant in Takeover Bid for U.S. Corporation

By DAVID BARBOZA and ANDREW ROSS SORKIN
Published: June 23, 2005
SHANGHAI, Thursday, June 23 - One of China's largest state-controlled oil companies made a $18.5 billion unsolicited bid Thursday for Unocal, signaling the first big takeover battle by a Chinese company for an American corporation.

The bold bid, by the China National Offshore Oil Corporation ( CNOOC), may be a watershed in Chinese corporate behavior, and it demonstrates the increasing influence on Asia of Wall Street's bare-knuckled hostile takeover tactics.

Interesting. The Chinese are receiving your FDI dollars and for what? To buy your local company. Outstanding. Huge inflows of FDI dollars = Buying spree.

It's sort of like when AOL bought Time Warner: They had so much money they had to buy something of substance to justify their huge inflow of investment cash flow.

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