Debbie Schlussel: Update: First Dubai Ports; Now Dow Chemical and Carlyle Group
The Dubai Ports sale to America's AIG finally went through a few weeks ago. So, thankfully, the United Arab Emirates is now out of the American ports operation biz.
Unfortunately, two more disturbing developments are in the making involving Arab and Muslim nations owning important parts of American infrastructure.
First, there is the bid to buy Dow Chemical. Reuters reports that the key bidders involve the usual anti-American suspects from the Gulf:
LONDON (Reuters) - A consortium of Middle Eastern investors and American buyout firms is preparing a $50 billion approach for Dow Chemical Co. (DOW.N: Quote, Profile , Research) in what could be the world's biggest ever leveraged buyout, a paper said on Sunday.Quoting sources close to the deal, The Sunday Express, a UK tabloid paper, said a financing package has been put in place for a break-up bid of between $52 to $58 a share and an approach valuing the company at least $50 billion could come by the end of this week.
Dow's shares closed up 35 cents at $44.47 on the New York Stock Exchange on Thursday.
At least half of the capital is being provided by investors from Saudi Arabia, Kuwait, Bahrain, Qatar, UAE and Oman, with the rest contributed by a number of U.S. buyout firms including Kohlberg Kravis Roberts (KKR.UL: Quote, Profile , Research), it said.
Then, there is the $1.8 billion sale of the Carlyle Group's aerospace units, Standard Aero Holdings, Inc. and Landmark Aviation--which have some top secret plane and aerospace technology--to state-owned/run Dubai Aerospace Enterprise Ltd. (Carlyle was previously the joint investment venture between George H.W. Bush, members of his former Administration, and the Bin Laden family.)
The question is whether the Committee on Foreign Investments in the U.S. (CFIUS) in the Department of Treasury (the committee also includes do-nothing DHS chief Michael Chertoff) allows the Dow and Carlyle sales to go through. That was the problem with the Dubai Ports deal. The OFAC didn't really scrutinize the deal.
Will they fully examine the deals, this time?
Don't bet on it. America is for sale to the highest--and often most detestable--bidder.
Posted by Debbie on April 9, 2007 12:37 PM to Debbie Schlussel