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Thread: China slams Chinalco rejection
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[quote=BOBERT,370618]Marie...Your statement is totally wrong. You should check your facts before posting such nonsense. "in 2007, this australian co. stocks almost plunged to death. with the help of chinese funding in stock market with the conditions of chinese hold 30% of its stake, it came back to life soon with the fair market value doubling even tripling. after that, it tore up the agreement with the fines that is just tiny part of huge tangible and intangible benefits they got from china at that time. what's more, this australian co violates the agreed sales credit terms with 40% discounts threatening that they can get more bids from Japan and other countries..." 1.Rio Tinto was NEVER in danger of collapsing. China NEVER funded Rio Tinto! Rio bought Alcoa and overextended but was NEVER in danger of collapse. Rio needed to raise capital to fund it's Alcoa purchase and had several options. 2.In 2007 Chinalco held a 9% stake in RIO and wanted to lift it to 18%. NEVER 30%! Tht's ridiculous! The Australian government does not allow more than 20% holding in any strategic company so how could Chinalco get 30% ???????? 3. Chinalco offered a ludicrously low price for an aditional 9% stake which was initially accepted by the Rio board but later rejected by shareholders as being oportunistic and way below fair value. Unlike in China, shareholders actually have a few rights in Australia and can veto a board decision. A capital raising was undertaken instead which was hugely successful and oversubscribed. 4 There is no agreement for a 40% price reduction. The previous price agreement expired on June 30.China refuses to reach ANY agreement and insists on a 40% reduction.This has been rejected by ALL iron ore supply companies from EVERYWHERE in the entire world!. Not just Rio Tinto! Japan, South Korea and India have agreed to the 33% discount but China refuses. China has now arrested the RIO executive and charged him with espionage. He was imprisoned for 6 days withour legal representaion or consular contact and now risks life imprisonment. They have also accused him of bribing steel company officials. He is virtually assured of being convicted because the Chinese secret police are involved. They have now confiscated Rio Tintos computer files and gained access to economically sensitive information. Private information! Who would have thought that corruption existed in China. Don't tell me that bribery isn't rife in all facets of Chinese business! What a joke! They have singled out this man for simply doing his job and accused him of stealing state secrets. China is attempting to bully and intimidate international companies using local laws which are totally unjust. The charges are simply a pay back for China losing face. China now risks doing serious damage to its international standing and credibility. The entire world is watching this fiasco. Next time check your facts Marrie! [/quote]
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