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Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (3725)	11/22/2004 2:06:05 PM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

[I am glad there is no deal bet. Minmetals and Noranda. For $7.5 billion, this is a rotten deal. No wonder Chinese does not take it<g> --"A special deal The transnational and cross-cultural dimensions apart, the terms of the deal are complicated since Brascan would like to retain its holdings in Noranda's aluminum interests, but would like to exit its nickel business. Thus, under the sell-off plan, which had been broadly worked out by Minmetals with Brascan, the former would pay it about $1.75 billion cash. The rest would be in the form of a stake in Norandal, Noranda's aluminum subsidiary. Minmetals, in turn, would get exclusive access to Noranda's nickel assets, thereby creating a unique corporate structure - a private sector subsidiary of a public sector company. It is significant that the talks did not reach the price negotiation stage.The $7.5 billion acquisition price that is being quoted is an indicative price. The market capitalization of the Noranda stock is about $5 billion. Minmetals had stated some time ago that it would acquire Noranda at a small premium. This has made experts and analysts conclude that the acquisition price would a $5 billion-plus deal. Add to this the fact that Minmetals would be raising about $2.5 billion in debt after the buyout, and you have the analysts' figure of $7.5 billion in acquisition price." atimes.com