Yesterday it was reported in the International Herald Tribune that a deal had been completed between the government of Dubai to own a 20 percent ownership stake in the Nasdaq and roughly a 30 percent stake in London. The deal sounds sketchy, right? Because it is.
If this deal is completed it would be the first time that a Middle Eastern government would OWN a large part of the 'exchanges'. This raises many red flags. Should we really be allowing foreign governments to be 'purchasing' ownership stakes into the our stock exchange, London's?
To get a better picture of this deal perhaps we should remember the DP World fiasco in 2005. DP? That stands for "DUBAI ports world". The very company that the Bush administration tried to ram through in '05 is back at it again. This is ridiculous..the Bush/Cheney operation tried to give them access to our ports and it failed. Now they're doing the same but, with our financial system. Are you beginning to get the stench of the Carlyle Group, yet?
This proposed deal is being accomplished through a unique trading scheme. Deals that the SEC should not even consider. Straight to the trash can...but no...
..in May, Nasdaq announced that it had reached agreement to buy the OMX Group for $3.7 billion. But in August, Borse Dubai, the parent company of the Dubai International Financial Exchange came in with a higher bid.Here is the extremely interesting part to me. Remember the Carlyle Group? The highly controversial private global investment firm who all the ' big names ' consult for. The company who placed their HQ in Washington, DC "so it wouldn't get lost in the crowd of New York investment firms". The company that bought out the bin Laden's family shares in the company after Sept 11, 2001. Well..there making news again. and what perfect timing they have. I suspect their hand in the 'odd Nasdaq trade' with Dubai.
In the deal that is expected to be announced Thursday, Borse Dubai will complete the purchase of the OMX Group and then hand it over to Nasdaq in exchange for at least a 19 percent share in the New York exchange and Nasdaq's stake of about 30 percent in the London Stock Exchange, which is valued at about $1.8 billion. IHT 9/20
Through a complex set of transactions, Borse Dubai will become a shareholder in Nasdaq and Nasdaq will become a strategic shareholder in the Dubai International Financial Exchange (DIFX). Steps will be taken to allow DIFX to be rebranded with the Nasdaq name. Borse Dubai will purchase a 28 per cent stake in the London Stock Exchange (LSE) from Nasdaq and Nasdaq will win control of OMX, given that all the necessary regulatory conditions are met. Khaleej Times 9/21
In an article in the Washington Post this morning , "Carlyle is selling part of its stake to Abu Dhabi".
Private-equity giant Carlyle Group said yesterday that it is selling a 7.5 percent share of its general partnership to an investment group owned by the government of Abu Dhabi.Of all the emirates of the UAE, Abu Dhabi is by far the richest. Her 420,000 citizens are estimated to have a monetary worth of $17 million each. In short, Abu Dhabi makes the Hampton's feel like Compton in the 80's.
Some of the countries[in the UAE] once sought to buy assets outright, but after the outcry over a bid to take over management of a U.S. ports operator, many have pursued less visible strategic investments with KEY firms.
Some of the countries once sought to buy assets outright, but after the outcry over a bid to take over management of a U.S. ports operator, many have pursued less visible strategic investments with key firms.
Excuse me here...but this is some crazy $hit. Carlyle is making out like a bandit while the market is crumbling. While the markets rupture it seems to me like they're shoring up capital and wielding the 'hands of capitalism' to their whim. Wait..David M. Rubenstein,Carlyle co-founder, just said that at the Private Equity Analyst Conference in New York on the 19th
"I don't know if we are going to go public or no....This gives us the flexibility to say yes or no, we don't want to. The reason you go public is to get permanent capital to do a lot of things. But NOW we have permanent capital." Washington Post 9/21Tom Taulli, author of The Edgar Online Guide to Decoding Financial Statements explains Carlyle Group's newsworthy deal in excellent fashion with his brief analysis on Blogging Buyouts
the firm has snagged a $1.35 billion private investment from Mubadala Development Company, which is part of Abu Dhabi. Essentially, this places a hefty $20 billion valuation on Carlyle.America. Please wake up! The Carlyle/Haliburton show is shifting into 'OVERDRIVE' and our media is silent.
It's an important move. Carlyle wants to have a permanent source of capital, which can help with minority investment opportunities and even buying up other private equity firms.
Plus, in order to keep up the growth momentum, Carlyle needs to expand into new markets, such as the Middle East.
Carlyle forced to pump £100m into newly floated UK offshoot August 29,2007
Carlyle's Rubenstein the subject of tax protest Sept. 19, 2007
Plan 2030 aims to make Abu Dhabi a global city Sept. 21, 2007
DP World recent news
Fears of dollar collapse as Saudis take fright
Same Players. Different Scandal.