[A-List] Bank Give Away
michael.hudson at earthlink.net
Sun Jan 29 07:23:47 MST 2006
The key in explaining to the Chinese why they have made a strategic
mistake is to ask them, "What are you going to do with this $3.8 billion?
Are you just going to buy US Treasury bills? What will they earn? Do you
think you will ever end up getting paid?"
On 1/29/06 1:29 AM, "Henry C.K. Liu" <hliu at mindspring.com> wrote:
> If 10% of ICBC, a bank that has 20% of the Chinese banking market and
> 21,000 branches, is sold for US$3.78, the total valuation of the bank
> is US$37.8 billion. This translated the total banking market of China to
> be worth only US$189 billion.
> By buying 10% of ICBM for US$3.78, Goldman and Co bought 2,100 ICBC
> branches for US$1.8 million each.
> Those who run the Chinese banking sector must be very stupid. Its the
> Year of the Dog alright!
> Henry C.K. Liu
> ICBC to seal stake sale to foreigners: report
> 2006/01/27 08:31
> Industrial and Commercial Bank of China (ICBC) is expected to seal a deal in
> today to sell a combined 10 per cent stake to three foreign strategic
> investors for
> US$3.78 billion, market sources said.
> Under attack for looking more like financial investors, Goldman Sachs,
> Allianz Group and
> American Express have drastically enhanced the strategic element of their
> acquisition proposals, including a large capital contribution from the
> United States
> investment bank.
> "There has been a big increase in the strategic focus since this was first
> said a source who was briefed on the situation.
> Instead of forming a consortium, as previously expected, the investors
> will sign
> separate investment and strategic co-operation agreements with China's
> largest commercial
> bank, which has about 20 per cent of the banking market and 21,000 branches
> throughout the
> country. <SCMP>
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