The Banking and Strategy Initiative

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Dual Listing requests and other cultural ‘absurdities’

Global businesses must have more of these war stories. We will see them again. If only that European and now African businesses are using recessionary conditions and development as excuses to bring down their hammer on the world. For this, they are using parochial and hithertho untenable institutions / policies that were at the root of all the misdemeanours of socialism and then for some of the backwardness of France, Western Europe and the black Continent that they successfully colonialised 200 years ago. MTN is not the onl one from South Africa. There is going to be more than one Dubai World..

But enough of the historical frisbee tour. We are at the corner of another new growth thrust, funded by liquid cash from all the elected governments. At least a chunk of this money will come to serious Infrastructure requirements of China, India, South Africa, Brazil, Russia and all the rest that work on foreign investors and that cater to their populace’s future needs at the policy level.

It is thus important that we do not allow such anachronisms as dual listing and funding of anti US / anti – Afghanistan sentiment, brokering war and such fancies that have titilated the French and the neo-socialists. I am not here to reiterate the freedom of free-speech but as a dealmaker and as an observer, I have always felt it sensible on the part of the decision makers to give in to the clauses that clinch the deal, even if only in the last mile. If you note any successful deals and growth initiatives of the 90s and the first decade now over, you will not the strong hand of political will showing where enablement of deals was required and not otherwise. Do not be fooled by the old China either. They have seen it and they have already changed their stance unknown to you and me, but showing in the increasing pace of dealmaking and in key reform stance being forced open by influential government denizens.

For me, that is a sure fire sign of guaranteed success and growth for the entire next decade just like any other. That, finally Arcelor bowed to commercial pressure to make Arcelor Mittal happen was made to happen by people who knew the need for change . Europe’s competition commission is not doing so badly either.  However, these policy mis-steps would be used to weed out such losers from the plethora of emerging market investments..

The full story was first featured in the India Infrastructure feed here

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This entry was posted on October 25, 2009 by in Amitonomics, China, Financial Markets, India, Infrastructure, Private Equity and tagged , , , , .

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