Posted on 07/15/2010 10:28:48 PM PDT by bruinbirdman
Watch out: Beijing's resource policies can be predatory.
At the beginning of the week PetroChina announced it was willing to assist BP with the spill in the Gulf of Mexico. "Our first reaction was how to help BP to quickly fix the problem," said Mao Zefeng, head of investor relations, to the Financial Times.
Was China's giant oil and gas producer looking to buy the beleaguered British company as well? "We have no comment on market rumors," Mao said. "But if there was some opportunity to work more closely together, we would welcome that."
BP (BP), as Mao's comments suggest, is in play. Its chief executive, Tony Hayward, met with Crown Prince Sheik Mohammed bin Zayed Al Nahyan of Abu Dhabi to convince him to take a 10% stake through his sovereign wealth fund. He's also knocking on other doors as part of what looks like an international road show.
BP is obviously trying to find cash to fend off takeover attempts, and that's a smart strategy because the giants--namely ExxonMobil (XOM), the world's second-largest energy producer by revenue, and Chevron (CVX), the sixth-largest--are thinking about pouncing on BP, the third-largest. There is even talk of India's Reliance raising money and making a run at the British company.
So if the Indians want to buy BP, why not the Chinese? Beijing certainly has the cash. PetroChina (PTR), just one of Beijing's state energy companies, said in May it was planning to spend at least $60 billion on acquiring foreign oil and gas reserves in the coming decade. That is part of China's acquisition campaign, which last year saw the country's record outlay of $32 billion for energy and mining acquisitions. In recent years--and especially in 2009--Beijing has evidently overpaid for foreign assets.
BP's shareholders wouldn't mind Beijing paying too much,
(Excerpt) Read more at forbes.com ...
Here’s the spin. BP will split off into BP International (or perhaps an entire name change), and have a division of BP America. That US division will be stuck with the Gulf mess to clean up and a limited amount of money (figure $30 billion max). The international division will then be able to sell off to Chinese ownership and then wash itself completely of any connection to the Gulf issue. In effect....moving on.
After 2012’s election...reality will hit the US media and the White House...that there’s no money left fix Gulf issues (which will linger for at least five years)...and the Feds will be stuck paying for any and all damages.
And to ensure that the White House cooperates with this game....BP will siphon off around $50-$100 million for various candidates this summer and in the summer of 2012.
Just my humble guess.
U.S.A. spinoff division will include US assets including its holdings in ANWAR and gulf liabilities.
This has been done by many companies in the past.
yitbos
Discovered the prime force behind RINO creation: “BP’s shareholders wouldn’t mind Beijing paying too much”
There you have it folks, the prime mover behind RINO herd is GREED!
Greed is The Prime Mover!
Marxine Waters (D-Watts) to oil execs, "Well just nationalize you."
yitbos
Your may be right... After it is just politics!
Actually, this whole thing is revolting! I have no doubt that BP or any other oil company is doing whatever they can to gain influence in the market. Can you say that this will not influence the Stock Markets...? Of course not... seems like this is all just a game to get the best market prices at the moment - hell with individual investors later.
I’m really beginning to think that the whole market is a sham and is used by the multi-millionaires to gain additional assets.
Are things as hey seem to be to the public? Who knows?
Then The Obammunist is your man.
yitbos
Heh... Maybe you should look at the results in the last 10 years or so... Seems like the results are always against the individual investor and for the major investor (you know those that play millions at a time). If you think that you can out vest these fellows...well, have at it...
Just let us know the results after 5 or 10 years... You know, the supposed idea behind investments for the long term.
Actually, just give us the investment gains for the last ten years...
I might add, that my 10 year investments went down 45%...how did yours work out?
Of course... It’s all about money and projected profits. These companies are not in the game for losses...
Yep...still always about money it seems, and rightfully so at this point...
You are right about that one. FR has been watching them for a long time.
Maybe those boomers that surfaced in Philappines, Korea, and Diego Garcia were more than a message to N. Korea, eh?
yitbos
Is that because that they can become independent or just ignore the actions of Iran?
Gold, Cash, CDs, Treasuries held up well. Selected equities did fine if you are looking at 10 yrs.
yitbos
Ah please... no one was buying gold or CD’s 10 years ago. If you were, you should have been in business (and making a fortune on forecasting)...
China needs oil and oil companies GET OIL. They also are fooling themselves into believing that “green solutions” are going to magically save the day.
Well, if China is into the Green stupidity, they deserve to lose all they have... It’s one thing to make money on the current trend, but another for long term investment...
The market always gives plenty of advance clues relative to booms and busts.
Some people got rich on the dot com bubble, some got rich on the real estate bubble, some really made money on both.
How to make a buck off the commies in Washington now?
yitbos
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