Posted on 07/25/2005 1:10:38 AM PDT by carl in alaska
Unocal Corp. urged on Sunday the company's board to consider a higher takeover offer from China's CNOOC Ltd. than one it backed from Chevron Corp.
Peter Schoenfeld, chief executive of P. Schoenfeld Asset Management which holds over 1 million Unocal shares, said the company would be liable to stockholders for any lost premium on the deal if it refused to seek a higher offer.
Schoenfeld released a copy of a July 20 letter sent to Unocal's board in which he estimated shareholder damages would be "at least several billion dollars."
"We demand that the Unocal board of directors adhere to its fiduciary duty to seek to obtain a higher offer for Unocal shareholders," Schoenfeld said in a statement. A Unocal spokesman would not comment on the letter
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(Excerpt) Read more at news.moneycentral.msn.com ...
It would seem the board in preventing a Chinese takeover was protecting the shareholders interst just fine.
Peter Schoenfeld = Traitor of America
Well I think Schoenfeld is just looking out for the interests of his clients, who own Unocal shares through his company. You can't blame Schoenfeld for that, but Unocal's board is also looking out for Unocal shareholders and at this time the board knows more about the CNOOC bid than anyone else in the US. So I would think the board has good reasons for rejecting the CNOOC bid, and at the appropriate time they may communicate these reasons to Unocal's shareholders.
WMT trading at 49.54.
I find it hard to understand where these talking head finance people, believe that selling Unocal to a communist country will have no repercussions down the road. Its plain and simple. China is a communist country and an enemy to free societies. And by looking the other way they are partly responsible for the imprisonment of the Chinese people.
I'd be real curious to see a Freeper bio on Peter Schoenfeld.
Unfortunately, we already have over 10 trillion dollars of outside money invested here:
Foreign-owned assets in the United States increased $1,739.3 billion to $11,537.0 billion with foreign direct investment in the United States valued at
current cost, and they increased $1,846.0 billion to $12,515.0 billion with foreign direct investment in the United States valued at market value.
Here's our complete "International Investment Position Report" from the BEA:
FOR WIRE TRANSMISSION: 8:30 A.M. EDT, THURSDAY, June 30, 2005 Elena L. Nguyen: (202) 606-9555 BEA 05-31 Christopher A. Gohrband: (202) 606-9564 U.S. Net International Investment Position at Yearend 2004 The U.S. net international investment position at yearend 2004 was -$2,484.2 billion (preliminary) with direct investment valued at current cost, as the value of foreign investments in the United States exceeded the value of U.S. investments abroad (table 1). At yearend 2003, the U.S. net international investment position was -$2,156.7 billion (revised). The -$327.5 billion change in the net investment position from yearend 2003 to yearend 2004 was largely due to substantial net foreign purchases of U.S. Treasury securities and U.S. corporate bonds. The impact of these net purchases was partly offset by appreciation of most foreign currencies against the U.S. dollar, which raised the dollar value of U.S.-owned assets abroad, especially of U.S.-owned foreign stocks. In addition, increases in stock market prices raised the value of U.S. holdings of foreign stocks somewhat more than they raised the value of foreign holdings of U.S. stocks. With direct investment valued at the current stock market value of owners equity, the net investment position was -$2,542.2 billion (preliminary) at yearend 2004, compared with -$2,372.4 billion (revised) at yearend 2003. The -$169.9 billion change in the net investment position on this basis resulted from the same factors as above. Price and exchange-rate changes were larger on this basis than with direct investment valued at current cost. Other highlights include: In regard to transactions, foreign acquisitions of assets in the United States were a record $1,440.1 billion in 2004, up from $889.0 billion in 2003. Foreign official acquisitions of assets were a record $394.7 billion, following last years record $278.3 billion; acquisitions of U.S. Treasury securities were a record. Increases in liabilities reported by U.S. banks were a record $322.6 billion, more than triple last years increase and more than double the previous record in 1997. Net foreign purchases of U.S. securities other than U.S. Treasury securities were $369.8 billion; net foreign purchases of U.S. bonds were a record $309.3 billion and net foreign purchases of U.S. stocks were $60.5 billion. Foreign direct investment in the United States rebounded, liabilities reported by U.S. nonbanks grew more strongly than in 2003, and net foreign purchases of U.S. Treasury securities by private foreigners were slightly higher. Also in regard to transactions, U.S. acquisitions of assets abroad were a record $855.5 billion in 2004, up from $328.4 billion in 2003. The increase was mostly accounted for by record increases in claims reported by U.S. banks and nonbanking concerns and a record increase in U.S. direct investment abroad. U.S. banks claims increased $356.1 billion, compared to a $9.6 billion increase in 2003; U.S. nonbanks claims increased $149.0 billion, compared to a $24.2 billion increase; and U.S. direct investment abroad increased $252.0 billion, compared to $140.6 billion. In contrast, net U.S. purchases of foreign securities decreased to $102.4 billion from $156.1 billion in 2003, as net U.S. purchases of both foreign stocks and bonds slowed. Price appreciation in most world stock markets increased the value of both foreign holdings of U.S. corporate stocks and U.S. holdings of foreign corporate stocks. Price appreciation of stocks also increased the value of owners equity of foreign direct investment in the United States and of U.S. direct investment abroad on a market-value basis. Appreciation of most foreign currencies against the U.S. dollar from yearend 2003 to yearend 2004 raised the dollar value of all foreign- currency-denominated assets and liabilities, especially the value of U.S.- owned foreign corporate stocks and U.S. direct investment abroad. ____________________________________________________________________________________ Valuation Methods for Direct Investment The current-cost method values the U.S. and foreign parents share of their affiliates investment in plant and equipment using the current cost of capital equipment, in land using general price indexes, and in inventories using estimates of their replacement cost. The market-value method values the owners equity component of the direct investment position using indexes of stock market prices. The historical-cost method values all assets and liabilities at their book value. Country and industry detail can be shown only under this method. Data on this basis are not presented in this release. ____________________________________________________________________________________ U.S.-owned assets abroad increased $1,411.8 billion to $9,052.8 billion with U.S. direct investment abroad valued at current cost, and they increased $1,676.1 billion to $9,972.8 billion with U.S. direct investment abroad valued at market value. U.S. holdings of foreign securities increased $482.9 billion to $3,436.7 billion. Holdings of foreign stocks increased as a result of large price appreciation, exchange-rate appreciation of foreign currencies against the U.S. dollar, and net U.S. purchases. Holdings of foreign bonds increased as a result of exchange-rate appreciation, net U.S. purchases, and small price appreciation. U.S. direct investment abroad valued at current cost increased $304.8 billion to $2,367.4 billion, mostly as a result of large financial outflows of $252.0 billion. At market value, U.S. direct investment abroad increased $569.2 billion to $3,287.4 billion, reflecting large financial outflows, strong price appreciation of owners equity resulting from an increase in foreign stock prices, and exchange-rate appreciation of foreign currencies against the U.S. dollar. Claims on foreigners reported by U.S. banks increased $414.7 billion to $2,174.0 billion, mostly as a result of financial outflows of $356.1 billion. Claims on unaffiliated foreigners reported by U.S. nonbanking concerns increased $204.6 billion to $801.5 billion, mostly as a result of financial outflows of $149.0 billion. U.S. official reserve assets increased $6.0 billion to $189.6 billion. Foreign-owned assets in the United States increased $1,739.3 billion to $11,537.0 billion with foreign direct investment in the United States valued at current cost, and they increased $1,846.0 billion to $12,515.0 billion with foreign direct investment in the United States valued at market value. Foreign official assets in the United States increased $414.9 billion to $1,982.0 billion. The increase was largely attributable to net purchases of U.S. Treasury securities. Foreign holdings of U.S. securities other than U.S. Treasury securities, excluding official holdings, increased $579.7 billion to $3,987.8 billion. Foreign holdings of U.S. stocks increased as a result of large price appreciation and modest net foreign purchases. Foreign holdings of U.S. bonds increased mostly as a result of net foreign purchases. Foreign holdings of U.S. Treasury securities, excluding official holdings, increased $96.5 billion to $639.7 billion, mostly as a result of sizable net foreign purchases. U.S. liabilities to private foreigners and international financial institutions reported by U.S. banks increased $383.5 billion, to $2,304.6 billion, mostly as a result of financial inflows of $322.6 billion. Liabilities to unaffiliated foreigners reported by U.S. nonbanking concerns increased $126.9 billion to $581.3 billion, mostly as a result of financial inflows of $124.4 billion. Foreign direct investment in the United States valued at current cost increased $123.0 billion to $1,708.9 billion, mostly as a result of net financial inflows. At market value, foreign direct investment in the United States increased $229.7 billion to $2,686.9 billion, as a result of net financial inflows and price appreciation of owners equity resulting from an increase in U.S. stock prices. U.S. currency held by foreigners increased $14.8 billion to $332.7 billion. * * * Revisions The previously published net international investment position in 2003 was -$2,430.7 billion with direct investment at current cost and -$2,651.0 billion with direct investment at market value. This year, the estimates of U.S. holdings of foreign securities for 2002-2003 were revised to incorporate results from the U.S. Treasury Departments Annual Survey of U.S. Portfolio Investment Abroad as of December 31, 2003. In addition, the estimates of U.S. holdings of foreign bonds for 1998-2001 were revised to incorporate revised data from the U.S. Treasury Departments Benchmark Survey of U.S. Portfolio Investment Abroad as of December 31, 2001. The estimates of foreign holdings of U.S. securities for 2002-2003 were revised to incorporate results from the U.S. Treasury Departments Benchmark Survey of Foreign Portfolio Investment in the United States as of June 30, 2004. The estimates of foreign holdings of U.S. corporate bonds and stocks for 2002-2003 also include the incorporation of results from the U.S. Treasury Departments Annual Survey of Foreign Portfolio Investment in the United States as of June 30, 2003. The estimates of short-term U.S. Treasury obligations and other short-term instruments reported by U.S. banks for 2001-2003 were revised to incorporate results from the U.S. Treasury Departments Benchmark Survey of Foreign Portfolio Investment in the United States as of June 30, 2004, as well as results from the annual surveys as of June 30, 2002 and June 30, 2003. The estimates of U.S. claims reported by U.S. banks for 1998-2003 were revised to incorporate new information on foreign commercial paper issued in the United States. In addition to the above improvements, all estimates are revised as a result of newly available or revised quarterly source data. Revisions attributable to these updated source data are for 2001-2003. The net result of revisions from all sources raised the value of U.S. assets abroad relative to the value of foreign assets in the United States for recent years. A more detailed discussion of the U.S. net international investment position in 2004 and revised historical data will appear in the July issue of the Survey of Current Business. That issue will also contain an article about historical-cost direct investment positions, with detail by country and industry, and revised direct investment historical data. * * * BEAs major national, regional, international, and industry estimates; the Survey of Current Business; and BEA news releases are available on BEAs Web site at www.bea.gov. By visiting the site, you can also subscribe to receive free e-mail summaries of BEA releases and announcements. Table 1.--International Investment Position of the United States at Yearend, 2003 and 2004 [millions of dollars] Changes in position in 2004 (decrease (-), increase (+)) Attributable to: Valuation adjustments Line Type of investment Position, Position, 2003/r/ Exchange- 2004/p/ Financial Price rate Other flows changes changes/1/ changes/2/ Total (a) (b) (c) (d) (a+b+c+d) Net international investment position of the United States: 1 With direct investment positions at current cost (line 3 less line 24)................-2,156,703 -584,597 57,253 190,726 9,102 -327,516 -2,484,219 2 With direct investment positions at market value (line 4 less line 25)................-2,372,370 -584,597 146,514 272,278 -4,070 -169,875 -2,542,245 U.S.-owned assets abroad: 3 With direct investment positions at current cost (lines 5+10+15).................... 7,640,986 855,508 227,413 228,630 100,259 1,411,810 9,052,796 4 With direct investment positions at market value (lines 5+10+16).................... 8,296,638 855,508 430,698 308,239 81,700 1,676,145 9,972,783 5 U.S. official reserve assets.......................................................... 183,577 -2,805 5,061 3,738 20 6,014 189,591 6 Gold................................................................................ 108,866 .... /3/5,061 .... /4/20 5,081 113,947 7 Special drawing rights.............................................................. 12,638 398 .... 592 .... 990 13,628 8 Reserve position in the International Monetary Fund................................. 22,535 -3,826 .... 835 .... -2,991 19,544 9 Foreign currencies.................................................................. 39,538 623 .... 2,311 .... 2,934 42,472 10 U.S. Government assets, other than official reserve assets............................ 84,772 -1,216 .... .... .... -1,216 83,556 11 U.S. credits and other long-term assets /5/......................................... 81,980 -1,177 .... .... .... -1,177 80,803 12 Repayable in dollars.............................................................. 81,706 -1,176 .... .... .... -1,176 80,530 13 Other /6/......................................................................... 274 -1 .... .... .... -1 273 14 U.S. foreign currency holdings and U.S. short-term assets........................... 2,792 -39 .... .... .... -39 2,753 U.S. private assets: 15 With direct investment at current cost (lines 17+19+22+23)........................ 7,372,637 859,529 222,352 224,892 100,239 1,407,012 8,779,649 16 With direct investment at market value (lines 18+19+22+23)........................ 8,028,289 859,529 425,637 304,501 81,680 1,671,347 9,699,636 Direct investment abroad: 17 At current cost................................................................... 2,062,551 252,012 10,195 36,787 5,841 304,835 2,367,386 18 At market value................................................................... 2,718,203 252,012 213,480 116,396 -12,718 569,170 3,287,373 19 Foreign securities.................................................................. 2,953,778 102,383 212,157 168,400 .... 482,940 3,436,718 20 Bonds............................................................................. 874,356 19,180 2,088 21,031 .... 42,299 916,655 21 Corporate stocks.................................................................. 2,079,422 83,203 210,069 147,369 .... 440,641 2,520,063 22 U.S. claims on unaffiliated foreigners reported by U.S. nonbanking concerns......... 596,961 149,001 .... 10,575 44,999 204,575 801,536 23 U.S. claims reported by U.S. banks, not included elsewhere.......................... 1,759,347 356,133 .... 9,130 49,399 414,662 2,174,009 Foreign-owned assets in the United States: 24 With direct investment at current cost (lines 26+33)................................ 9,797,689 1,440,105 170,160 37,904 91,157 1,739,326 11,537,015 25 With direct investment at market value (lines 26+34)................................10,669,008 1,440,105 284,184 35,961 85,770 1,846,020 12,515,028 26 Foreign official assets in the United States.......................................... 1,567,124 394,710 -7,342 .... 27,500 414,868 1,981,992 27 U.S. Government securities.......................................................... 1,192,242 311,133 -19,456 .... 15,658 307,335 1,499,577 28 U.S. Treasury securities.......................................................... 990,411 272,648 -16,010 .... 13,453 270,091 1,260,502 29 Other............................................................................. 201,831 38,485 -3,446 .... 2,205 37,244 239,075 30 Other U.S. Government liabilities /7/............................................... 16,627 488 .... .... .... 488 17,115 31 U.S. liabilities reported by U.S. banks, not included elsewhere..................... 201,054 70,329 .... .... 88 70,417 271,471 32 Other foreign official assets....................................................... 157,201 12,760 12,114 .... 11,754 36,628 193,829 Other foreign assets: 33 With direct investment at current cost (lines 35+37+38+41+42+43).................. 8,230,565 1,045,395 177,502 37,904 63,657 1,324,458 9,555,023 34 With direct investment at market value (lines 36+37+38+41+42+43).................. 9,101,884 1,045,395 291,526 35,961 58,270 1,431,152 10,533,036 Direct investment in the United States: 35 At current cost................................................................... 1,585,898 106,832 3,000 1,943 11,204 122,979 1,708,877 36 At market value................................................................... 2,457,217 106,832 117,024 .... 5,817 229,673 2,686,890 37 U.S. Treasury securities............................................................ 543,209 106,958 -5,078 .... -5,373 96,507 639,716 38 U.S. securities other than U.S. Treasury securities................................. 3,408,113 369,793 179,580 24,171 6,140 579,684 3,987,797 39 Corporate and other bonds......................................................... 1,707,206 309,258 12,475 24,171 6,140 352,044 2,059,250 40 Corporate stocks.................................................................. 1,700,907 60,535 167,105 .... .... 227,640 1,928,547 41 U.S. currency....................................................................... 317,908 14,827 .... .... .... 14,827 332,735 42 U.S. liabilities to unaffiliated foreigners reported by U.S. nonbanking concerns.... 454,317 124,358 .... 5,848 -3,265 126,941 581,258 43 U.S. liabilities reported by U.S. banks, not included elsewhere..................... 1,921,120 322,627 .... 5,942 54,951 383,520 2,304,640 p Preliminary. r Revised. 1. Represents gains or losses on foreign-currency-denominated assets and liabilities due to their revaluation at current exchange rates. 2. Includes changes in coverage, capital gains and losses of direct investment affiliates, and other adjustments to the value of assets and liabilities. 3. Reflects changes in the value of the official gold stock due to fluctuations in the market price of gold. 4. Reflects changes in gold stock from U.S. Treasury sales of gold medallions and commemorative and bullion coins; also reflects replenishment through open market purchases. These demonetizations/monetizations are not included in international transactions financial flows. 5. Also includes paid-in capital subscriptions to international financial institutions and resources provided to foreigners under foreign assistance programs requiring repayment over several years. Excludes World War I debts that are not being serviced. 6. Includes indebtedness that the borrower may contractually, or at its option, repay with its currency, with a third country's currency, or by delivery of materials or transfer of services. 7. Primarily U.S. Government liabilities associated with military sales contracts and other transactions arranged with or through foreign official agencies. Source: Bureau of Economic Analysis
The 'globalony' corporatists will be held responsible for the inevitable war.
But our heavy military investment will pay off.
BUMP
I don't believe so; historically, there has always been a good bit of investment by Europeans (primarily Britain) here in the U.S., although it hasn't always proved profitable for them.
I don't like the levels that the foreign net asset position is getting to, but I don't see how we can slow it down unless we get some of our red ink under control [and I think it would also help to remove some of the big roadblocks in our system, such as all of the heavy regulation that our companies labor under, and reduce and simplify our tax system.]
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