With the takeover of Canada’s Nexen Inc. still not finalized, already politicians on both sides of the border are using it for leverage.
On Monday, federal New Democrats called on the government to initiate a “thorough” and “transparent” review of CNOOC’s takeover of Nexen Inc., after U.S. regulators raised the possibility of insider trading before the deal was announced.
On Friday, the U.S. Securitues and Exchange Commission sought action against traders who it said used accounts in Singapore and Hong Kong to accumulate over $13 million by purchasing Nexen shares ahead of the CNOOC takeover deal announcement.
The NDP said in a statement that “it’s time Conservatives agree to a thorough and transparent review of this takeover,” which they say should include public hearings before the natural resources committee. The NDP also wants the Conservatives to “demonstrate how the deal is in Canada’s net benefit.”
Last week, the prime minister told reporters in Oshawa that “nobody should prejudge” what the government’s decision will be on the pending $15-billion takeover. “This investment will be thoroughly scrutinized before it is either accepted or rejected,” Prime Minister Stephen Harper said.
One of the firms named by the SEC was Well Advantage, which is controlled by Zhang Zhi Rong, a Hong Kong businessman. He also runs another company – Rongsheng Heavy Industries – which, according to the SEC, has a “strategic co-operation agreement” with CNOOC.
Meanwhile, in the U.S., Senator Chalres Schumer wants the U.S. government to hold up the takeover and use it as a way to press China on its trade policy. He made his argument in a letter sent Friday to Treasury Secretary Timothy Geithner, who chairs the Committee on Foreign Investment in the United States, or CFIUS, a body that reviews foreign investments in U.S. companies.
“I urge you not to miss this opportunity – the largest foreign acquisition ever by a Chinese company – to hold China to the commitments it has made to provide a level playing field for U.S. companies seeking to access Chinese markets,” Schumer wrote.
He suggested some ways China could level the playing field, including simplifying its review system for foreign investments to focus only on national security concerns and increasing enforcement of intellectual property infringements.
Original Article
Source: ipolitics
Author: Colin Horgan
On Monday, federal New Democrats called on the government to initiate a “thorough” and “transparent” review of CNOOC’s takeover of Nexen Inc., after U.S. regulators raised the possibility of insider trading before the deal was announced.
On Friday, the U.S. Securitues and Exchange Commission sought action against traders who it said used accounts in Singapore and Hong Kong to accumulate over $13 million by purchasing Nexen shares ahead of the CNOOC takeover deal announcement.
The NDP said in a statement that “it’s time Conservatives agree to a thorough and transparent review of this takeover,” which they say should include public hearings before the natural resources committee. The NDP also wants the Conservatives to “demonstrate how the deal is in Canada’s net benefit.”
Last week, the prime minister told reporters in Oshawa that “nobody should prejudge” what the government’s decision will be on the pending $15-billion takeover. “This investment will be thoroughly scrutinized before it is either accepted or rejected,” Prime Minister Stephen Harper said.
One of the firms named by the SEC was Well Advantage, which is controlled by Zhang Zhi Rong, a Hong Kong businessman. He also runs another company – Rongsheng Heavy Industries – which, according to the SEC, has a “strategic co-operation agreement” with CNOOC.
Meanwhile, in the U.S., Senator Chalres Schumer wants the U.S. government to hold up the takeover and use it as a way to press China on its trade policy. He made his argument in a letter sent Friday to Treasury Secretary Timothy Geithner, who chairs the Committee on Foreign Investment in the United States, or CFIUS, a body that reviews foreign investments in U.S. companies.
“I urge you not to miss this opportunity – the largest foreign acquisition ever by a Chinese company – to hold China to the commitments it has made to provide a level playing field for U.S. companies seeking to access Chinese markets,” Schumer wrote.
He suggested some ways China could level the playing field, including simplifying its review system for foreign investments to focus only on national security concerns and increasing enforcement of intellectual property infringements.
Original Article
Source: ipolitics
Author: Colin Horgan
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