Dec 11 (Reuters) - HSBC Holdings Plc is expected to become the first bank to admit to both money-laundering lapses and U.S. sanctions violations onTuesday as part of a settlement of around $1.8 billion with law enforcement agencies, according to people familiar with the situation.
The settlement, which willbe in the form of a deferred-prosecution agreement, is the largest by far that a U.S. or European bank has agreed to amid a crackdown in the United States.
Reuters reported last week that London-based HSBC would be forced to pay the $1.8 billion and that criminal charges would be deferred. In November, HSBC said the total penalty could exceed $1.5 billion.
Details about the settlement could come around midday on Tuesday (1700 GMT) in a presentation by the U.S. Justice Department in Brooklyn, New York, or Washington, D.C.
Prosecutors have been investigating the bank for several years over multiple lapses in policingillicit flows of money tied to Mexican exchange houses that have been known to move money fordrug traffickers.
This year, the bank has undertaken a public relations campaign and internal reorganisation in London to underscore that it took seriously the Justice Department probe and its anti-money laundering obligations.
In January, it named former top U.S. Treasury Department official Stuart Levey as chief legal officer.
As recently as Monday, HSBC said named Robert Werner, a former TreasuryDepartment official who specialised in money laundering and sanctions violations, as head of financial crime complianceand HSBC money-laundering compliance officer. Werner joined the bank in August.
A number of European and U.S. banks have beenforced to pay hundreds ofmillions of dollars for violating U.S. sanctions laws that prohibit dealingswith clients or other banksin Iran, Cuba and Sudan.
On Monday, another British bank, Standard Chartered Plc , agreed to a $327 million settlement for sanctions violations.
Other banks caught up in a sanctions probe that originated with the Manhattan district attorneyinclude Lloyds Banking Group and Barclays Plc in Britain, Credit Suisse Group in Switzerland and Dutch banks ABN Amro Holdings NV and ING Bank NV.
But HSBC's problems extend beyond sanctions violations to a failure to police cash transactions linked to Mexico. Details of those dealings were reported this summer in a sweeping U.S. Senate probe.
According to that report, Mexican and U.S. regulators "expressed repeated concerns" that an HSBC unit handled such a large amount of bulk cash that it had to betied to "illegal drug proceeds".
How to prosecute HSBC has been a source of debate within the Justice Department. As far back as2010, a U.S. attorney in West Virginia was prepared to indict HSBC on a money-laundering count, according to a document reviewed by Reuters.
Tuesday, 11 December 2012
Monday, 10 December 2012
List of Banks in Egypt
The major commercial top banks in Egypt are Cairo Amman Bank, Banque Misr, Bank of Alexandria, NationalBank of Egypt and Banque du Caire. These are well-known commercial public sector banks.
The non-commercial banks that are private include Arab African International Bank, National Societe Generale Bank, Islamic International Bank for investment and development and Export Development. These banks have remarkable contribution and with efficient operation have gained immense popularity.
Foreign and private banks
The foreign banks in Egypt are Barclays, BNP Paribas, Egyptian American Bank, Commercial International Bank and Agricole Indosuez.
The private banks are Misr International, Faisal Islamic Bank, the Nile Bank, Egyptian American Bank, Egyptian commercial Bank and Al Watany Bank of Egypt. Among these banks, Faisal Islamic Bank is the foremost Islamic and commercial Bank, besides being the most significant financial institute.
The system of banking in Egypt comprises of fifty-seven commercial banks thatare stated-owned, including26 investment banks, 28 commercial banks and threespecialized banks. Among the number of investment banks, the joint-ventured banks are 11 and 15 are foreign banks branches.
The banking in Egypt is growing, although joint venture banks as well as private banks remain small having few branches. However, the banking system here has undergone severe transformations that they are highly modern andliberalized and is regulated and supervised based on the international standards. Name Tel. No. CompanyWebsite Address
ABC International Bank PLC-Egypt-S.A.E +202 27362684 http://www.arabbanking.com/
AFRICAN DEVELOPMENT BANK GROUP +202 516 0906http://www.afdb.org/en/
AHLI UNITED BANK+20 22 580 1200 http://www.ahliunited.com/
ALEXANDRIA COMMERCIAL AND MARITIME BANK +20 3 927307 http://www.acmb.com.eg/
AL WATANY BANK OF EGYPT +202 333 888 16 http://www.alwatany.net/
ARAB BANK +20 2 3029069 http://www.arabbank.com.eg/
BANK OF ALEXANDRIA+20 2 393 8623 http://www.alexbank.com/
BANK OF COMMERCE& DEVELOPMENT ( AL-TIGAREYOUN ) +20 2 3928849 http://www.nbdegypt.com/
BANQUE DU CAIRE 3904554 http://www.bdc.com.eg/
BLOM BANK EGYPT+20 2 303 9825 http://www.blom.com.lb/English/
BNP PARIBAS LE CAIRE 7948324 NA
CAIRO FAR EAST BANK3362517 NA
CENTRAL BANK OF EGYPT 00202 3931514 http://www.cbe.org.eg/
COMMERCIAL INTERNATIONAL BANK S.A.E. 5703043 http://www.cibeg.com/en/
CREDIT SUISSE -GIZA - CAIRO +20 2 570 99 55 https://www.credit-suisse.com/
CREDIT AGRICOLE BANK 20-2-738-2661 http://www.eab-online.com
DELTA INTERNATIONAL BANK 5753492 NA
DEUTSCHE BANK +20 2 3907344 https://www.deutsche-bank.de/
EGYPTIAN AMERICAN BANK +20 2 738 2661 http://www.eab-online.com/
EGYPTIAN ARAB LANDBANK 002 02 3383697 https://www.eal-bank.com/
EGYPTIAN COMMERCIAL BANK 5778933 http://www.ecb.com.eg/
EGYPTIAN GULF BANK 7606457 NA
EGYPTIAN SAUDI FINANCE BANK 7481222 http://www.esf-bank.com/
EGYPTIAN WORKERS BANK 5763622 NA
FAISAL ISLAMIC BANKOF EGYPT 7868723 NA
HSBC BANK EGYPT S.A.E. 7354849 NA
HOUSING & DEVELOPMENT BANK 202-749-2013 http://www.hdb-egy.com/
MISR AMERICA INTERNATIONAL BANK 7616623/27 http://www.maib.com.eg/
MISR EXTERIOR BANK 202 796 3939 http://www.misrext.com/
MISR ROMANIAN BANK 3039825 http://www.mrb.com.eg/
MOHANDES BANK 3362761 NA
NATIONAL BANK FOR DEVELOPMENT 3921529 http://www.nbdegypt.com/
NATIONAL BANK OF EGYPT 5749101 http://www.nbe.com.eg/
NATIONAL SOCIETE GENERAL BANK 20-2-770-7777 http://www.nsgb.com.eg/
PORT SAID NATIONALBANK FOR DEVELOPMENT +202 066/3237602 NA
SUEZ CANAL BANK 7945394 http://www.scbank.com.eg/
SOC ARABE INTL B 20-3-749-9464 NA
THE NILE BANK 5751105 NA
UBS AG IN KAIRO +2022 578 92 82 http://www.ubs.com/in/en.html
UNITED BANK OF EGYPT (U.B.E.) 7920146/7/8/9 http://www.ube.net/
The non-commercial banks that are private include Arab African International Bank, National Societe Generale Bank, Islamic International Bank for investment and development and Export Development. These banks have remarkable contribution and with efficient operation have gained immense popularity.
Foreign and private banks
The foreign banks in Egypt are Barclays, BNP Paribas, Egyptian American Bank, Commercial International Bank and Agricole Indosuez.
The private banks are Misr International, Faisal Islamic Bank, the Nile Bank, Egyptian American Bank, Egyptian commercial Bank and Al Watany Bank of Egypt. Among these banks, Faisal Islamic Bank is the foremost Islamic and commercial Bank, besides being the most significant financial institute.
The system of banking in Egypt comprises of fifty-seven commercial banks thatare stated-owned, including26 investment banks, 28 commercial banks and threespecialized banks. Among the number of investment banks, the joint-ventured banks are 11 and 15 are foreign banks branches.
The banking in Egypt is growing, although joint venture banks as well as private banks remain small having few branches. However, the banking system here has undergone severe transformations that they are highly modern andliberalized and is regulated and supervised based on the international standards. Name Tel. No. CompanyWebsite Address
ABC International Bank PLC-Egypt-S.A.E +202 27362684 http://www.arabbanking.com/
AFRICAN DEVELOPMENT BANK GROUP +202 516 0906http://www.afdb.org/en/
AHLI UNITED BANK+20 22 580 1200 http://www.ahliunited.com/
ALEXANDRIA COMMERCIAL AND MARITIME BANK +20 3 927307 http://www.acmb.com.eg/
AL WATANY BANK OF EGYPT +202 333 888 16 http://www.alwatany.net/
ARAB BANK +20 2 3029069 http://www.arabbank.com.eg/
BANK OF ALEXANDRIA+20 2 393 8623 http://www.alexbank.com/
BANK OF COMMERCE& DEVELOPMENT ( AL-TIGAREYOUN ) +20 2 3928849 http://www.nbdegypt.com/
BANQUE DU CAIRE 3904554 http://www.bdc.com.eg/
BLOM BANK EGYPT+20 2 303 9825 http://www.blom.com.lb/English/
BNP PARIBAS LE CAIRE 7948324 NA
CAIRO FAR EAST BANK3362517 NA
CENTRAL BANK OF EGYPT 00202 3931514 http://www.cbe.org.eg/
COMMERCIAL INTERNATIONAL BANK S.A.E. 5703043 http://www.cibeg.com/en/
CREDIT SUISSE -GIZA - CAIRO +20 2 570 99 55 https://www.credit-suisse.com/
CREDIT AGRICOLE BANK 20-2-738-2661 http://www.eab-online.com
DELTA INTERNATIONAL BANK 5753492 NA
DEUTSCHE BANK +20 2 3907344 https://www.deutsche-bank.de/
EGYPTIAN AMERICAN BANK +20 2 738 2661 http://www.eab-online.com/
EGYPTIAN ARAB LANDBANK 002 02 3383697 https://www.eal-bank.com/
EGYPTIAN COMMERCIAL BANK 5778933 http://www.ecb.com.eg/
EGYPTIAN GULF BANK 7606457 NA
EGYPTIAN SAUDI FINANCE BANK 7481222 http://www.esf-bank.com/
EGYPTIAN WORKERS BANK 5763622 NA
FAISAL ISLAMIC BANKOF EGYPT 7868723 NA
HSBC BANK EGYPT S.A.E. 7354849 NA
HOUSING & DEVELOPMENT BANK 202-749-2013 http://www.hdb-egy.com/
MISR AMERICA INTERNATIONAL BANK 7616623/27 http://www.maib.com.eg/
MISR EXTERIOR BANK 202 796 3939 http://www.misrext.com/
MISR ROMANIAN BANK 3039825 http://www.mrb.com.eg/
MOHANDES BANK 3362761 NA
NATIONAL BANK FOR DEVELOPMENT 3921529 http://www.nbdegypt.com/
NATIONAL BANK OF EGYPT 5749101 http://www.nbe.com.eg/
NATIONAL SOCIETE GENERAL BANK 20-2-770-7777 http://www.nsgb.com.eg/
PORT SAID NATIONALBANK FOR DEVELOPMENT +202 066/3237602 NA
SUEZ CANAL BANK 7945394 http://www.scbank.com.eg/
SOC ARABE INTL B 20-3-749-9464 NA
THE NILE BANK 5751105 NA
UBS AG IN KAIRO +2022 578 92 82 http://www.ubs.com/in/en.html
UNITED BANK OF EGYPT (U.B.E.) 7920146/7/8/9 http://www.ube.net/
AIG's plane leasing firm to Chinese group for up to $4.8 billion
(Reuters) - American International Group Inc ( AIG.N ) is to sell nearly all of ILFC ( ILFC.N ), the world's second-largest airplane leasing business, to a Chinese consortium for up to $4.8 billion, giving the fastest growing aviation market easier and cheaper access to planes.
Chinese firms have shown interest in aircraft leasing before, and the deal would give China access to a global network of about 200 airlines in 80 countries. China is alreadyILFC's largest market with180 planes operating there, giving it 35 percentmarket share.
"It's the biggest deal we have in the aircraft leasingworld and it's very ambitious," said Paul Sheridan, head of Asia at aviation consultancy firm Ascend Advisor. "We believe there are not enough aircraft on order in China at the moment. Itwill help Chinese airlines get more aircraft."
The world's two largest planemakers - Airbus, owned by aerospace group EADS ( EAD.PA ), and U.S. rival Boeing ( BA.N ) - have predicted demand for $4.5 trillion worth of passenger jets over the next two decades, with about two-thirds of new planes sold in the Asia-Pacific region, and China as the biggest single market in value terms.
Analysts say China tends to balance its orders between Airbus and Boeing, partly for political reasons. This means China pays an effective premiumfor planes as the two manufacturers don't have to compete as heavily for orders as they do elsewhere. ILFC's order books could mean cheaper planes for China, industry experts say.
U.S. REVIEW
U.S. insurer AIG, which had said on Friday it was in talks about a sale of the business to Chinese buyers, said it will submit the offer for review by theU.S. Committee on ForeignInvestment, or CFIUS, which vets foreign deals for security concerns.
Chinese state-backed investments in some sectors have stirred a political backlash, but aircraft leasing is seen as less sensitive than investment in minerals or telecoms equipment."ILFC's portfolio is not heavily in the U.S. It's an American-owned asset, but a lot of their aircraft fly outside the U.S," said Ascend's Sheridan, adding he did not expectthe U.S. government agency to block the deal.
AIG received a $182 billion U.S. government bail-out following the global financial crisis, and has been selling off the bulk of its Asian operations as part of a wider divestment plan so it can repay the government. In September, the U.S. Treasury cut its AIG stake to below 16 percent of the outstanding shares from around 53.4 percent.
CHINA BUSY BUYERS
The Chinese consortium - made up of New China Trust, which is one-fifth owned by Barclays Plc ( BARC.L ), China Aviation Industrial Fund and P3 Investments Ltd, and advised by Credit Suisse ( CSGN.VX ) - will buy 80.1 percent of ILFC for $4.23 billion, with the option to buy another 9.9 percent. An arm of Industrial and Commercial Bank of China( 1398.HK ), China's biggestbank, will join once the deal has regulatory approval.
P3 Investments is led by Wing-Fai Ng, co-founder of the now defunct pan-Asia fund Primus Financial Holdings.
Founded by aircraft leasing legend Steven Udvar-Hazy, who sold thecompany to AIG in 1990, ILFC is among the world'sbiggest owners of passenger jets. Its main rival is GECAS, an arm of General Electric Co ( GE.N ).
The deal reinforces China's appetite for outbound mergers and acquisitions, taking the country's 2012 tally to$56.8 billion, according toThomson Reuters data, thebiggest dealmaking spree since 2008.
In the past few days alone, Canada agreed to allow CNOOC ( 0883.HK ) to buy domestic energy company Nexen Inc ( NXY.TO ) for $15.1 billion, and China's privately-owned Wanxiang Group won a politically sensitive auction for bankrupt electric car battery markerA123 Systems Inc ( AONEQ.PK ), partly funded by the U.S. government.
WEAK MARKETS SAW OFFIPO
AIG had long wanted to float ILFC in the United States as part of a wider program to raise money topay back the U.S. government, but poor market conditions shelvedthose plans.
The sale would leave AIGwith a $6.4 billion stake inits former Asian life insurance unit AIA Group Ltd ( 1299.HK ), which is widely expected to be sold.
AIG said it would record a non-operating loss of$4.4 billion on the ILFC sale, including a charge for tax-related items. The deal, expected to close in the 2013 second quarter, values the leasing business at $5.28 billion, below its end-third quarter book value of$7.9 billion.
"Upon completion, the transaction will have a positive impact on AIG`s liquidity and credit profileand will enable us to continue to focus on our core insurance businesses," AIG CEO Robert Benmosche said in a statement.
AIG agreed to buy a $500million stake in Chinese insurer PICC Group ( 1339.HK ), which made its debut on the Hong Kong stock exchange last week.
ILFC will retain its currentmanagement and continue to be based in Los Angeles. It will appoint a new board with a majority of U.S. and European representatives, AIG said.
Chinese firms have shown interest in aircraft leasing before, and the deal would give China access to a global network of about 200 airlines in 80 countries. China is alreadyILFC's largest market with180 planes operating there, giving it 35 percentmarket share.
"It's the biggest deal we have in the aircraft leasingworld and it's very ambitious," said Paul Sheridan, head of Asia at aviation consultancy firm Ascend Advisor. "We believe there are not enough aircraft on order in China at the moment. Itwill help Chinese airlines get more aircraft."
The world's two largest planemakers - Airbus, owned by aerospace group EADS ( EAD.PA ), and U.S. rival Boeing ( BA.N ) - have predicted demand for $4.5 trillion worth of passenger jets over the next two decades, with about two-thirds of new planes sold in the Asia-Pacific region, and China as the biggest single market in value terms.
Analysts say China tends to balance its orders between Airbus and Boeing, partly for political reasons. This means China pays an effective premiumfor planes as the two manufacturers don't have to compete as heavily for orders as they do elsewhere. ILFC's order books could mean cheaper planes for China, industry experts say.
U.S. REVIEW
U.S. insurer AIG, which had said on Friday it was in talks about a sale of the business to Chinese buyers, said it will submit the offer for review by theU.S. Committee on ForeignInvestment, or CFIUS, which vets foreign deals for security concerns.
Chinese state-backed investments in some sectors have stirred a political backlash, but aircraft leasing is seen as less sensitive than investment in minerals or telecoms equipment."ILFC's portfolio is not heavily in the U.S. It's an American-owned asset, but a lot of their aircraft fly outside the U.S," said Ascend's Sheridan, adding he did not expectthe U.S. government agency to block the deal.
AIG received a $182 billion U.S. government bail-out following the global financial crisis, and has been selling off the bulk of its Asian operations as part of a wider divestment plan so it can repay the government. In September, the U.S. Treasury cut its AIG stake to below 16 percent of the outstanding shares from around 53.4 percent.
CHINA BUSY BUYERS
The Chinese consortium - made up of New China Trust, which is one-fifth owned by Barclays Plc ( BARC.L ), China Aviation Industrial Fund and P3 Investments Ltd, and advised by Credit Suisse ( CSGN.VX ) - will buy 80.1 percent of ILFC for $4.23 billion, with the option to buy another 9.9 percent. An arm of Industrial and Commercial Bank of China( 1398.HK ), China's biggestbank, will join once the deal has regulatory approval.
P3 Investments is led by Wing-Fai Ng, co-founder of the now defunct pan-Asia fund Primus Financial Holdings.
Founded by aircraft leasing legend Steven Udvar-Hazy, who sold thecompany to AIG in 1990, ILFC is among the world'sbiggest owners of passenger jets. Its main rival is GECAS, an arm of General Electric Co ( GE.N ).
The deal reinforces China's appetite for outbound mergers and acquisitions, taking the country's 2012 tally to$56.8 billion, according toThomson Reuters data, thebiggest dealmaking spree since 2008.
In the past few days alone, Canada agreed to allow CNOOC ( 0883.HK ) to buy domestic energy company Nexen Inc ( NXY.TO ) for $15.1 billion, and China's privately-owned Wanxiang Group won a politically sensitive auction for bankrupt electric car battery markerA123 Systems Inc ( AONEQ.PK ), partly funded by the U.S. government.
WEAK MARKETS SAW OFFIPO
AIG had long wanted to float ILFC in the United States as part of a wider program to raise money topay back the U.S. government, but poor market conditions shelvedthose plans.
The sale would leave AIGwith a $6.4 billion stake inits former Asian life insurance unit AIA Group Ltd ( 1299.HK ), which is widely expected to be sold.
AIG said it would record a non-operating loss of$4.4 billion on the ILFC sale, including a charge for tax-related items. The deal, expected to close in the 2013 second quarter, values the leasing business at $5.28 billion, below its end-third quarter book value of$7.9 billion.
"Upon completion, the transaction will have a positive impact on AIG`s liquidity and credit profileand will enable us to continue to focus on our core insurance businesses," AIG CEO Robert Benmosche said in a statement.
AIG agreed to buy a $500million stake in Chinese insurer PICC Group ( 1339.HK ), which made its debut on the Hong Kong stock exchange last week.
ILFC will retain its currentmanagement and continue to be based in Los Angeles. It will appoint a new board with a majority of U.S. and European representatives, AIG said.
Saturday, 8 December 2012
HSBC to pay $1.5bnin fines to US to settle money-laundering investigations .
HSBC is expected to pay more than $1.5bn (£933m) in fines to US authorities within weeks to settle money-laundering investigations into its business.
The bank could be fined the sum as early as next week as part of a settlementwith federal prosecutors, according to reports yesterday.
HSBC has put aside $1.5bn to meet the cost of the fines, but admitted at its latest results presentation that the eventual penalty could be “significantly higher” and that it could face criminal charges. Yesterday’s reports put the likely size of the fine at$1.8bn. HSBC declined to comment.
The fines relate to an investigation of HSBC’s US and Mexican operations that found the bank had allegedly ignored warningsthat billions of dollars of funds being moved between the two subsidiaries were linked to drug trafficking.
A Senate committee described the bank as “pervasively polluted for a long time”. It highlighted what it said were lax controls and inadequate compliance by staff as the bank was accused of handling transactions involving terrorists, drug lords and rogue regimes.
David Bagley, HSBC’s global head of compliance, resigned over the scandal, while Stuart Gulliver, the bank’s chief executive, apologised for “the mistakesof the past”.
A settlement would likely involve the US Department of Justice agreeing a deal whereby HSBC paid a largefine, but in return would have the prospect of a further criminal action dropped so long as it reformed compliance systems.
But there is no certainty of this type of settlement. Announcing its third-quarter results last month, HSBC said: “While the prosecution of corporate criminal charges in these types of cases has most often been deferred through an agreement withthe relevant authorities, theUS authorities have substantial discretion, and prior settlements can provide no assurance as to how the US authorities will proceed in these matters.”
A fine of $1.8bn would be one of the biggest financial penalties imposed on a British bank, but would notprevent HSBC from reporting a profit for 2012.
The bank is in the process of radically restructuring itsUS operations and is preparing to sell down some of the more than$40bn of toxic US debt it still holds on its books morethan four years on from thefinancial crisis.
The bank could be fined the sum as early as next week as part of a settlementwith federal prosecutors, according to reports yesterday.
HSBC has put aside $1.5bn to meet the cost of the fines, but admitted at its latest results presentation that the eventual penalty could be “significantly higher” and that it could face criminal charges. Yesterday’s reports put the likely size of the fine at$1.8bn. HSBC declined to comment.
The fines relate to an investigation of HSBC’s US and Mexican operations that found the bank had allegedly ignored warningsthat billions of dollars of funds being moved between the two subsidiaries were linked to drug trafficking.
A Senate committee described the bank as “pervasively polluted for a long time”. It highlighted what it said were lax controls and inadequate compliance by staff as the bank was accused of handling transactions involving terrorists, drug lords and rogue regimes.
David Bagley, HSBC’s global head of compliance, resigned over the scandal, while Stuart Gulliver, the bank’s chief executive, apologised for “the mistakesof the past”.
A settlement would likely involve the US Department of Justice agreeing a deal whereby HSBC paid a largefine, but in return would have the prospect of a further criminal action dropped so long as it reformed compliance systems.
But there is no certainty of this type of settlement. Announcing its third-quarter results last month, HSBC said: “While the prosecution of corporate criminal charges in these types of cases has most often been deferred through an agreement withthe relevant authorities, theUS authorities have substantial discretion, and prior settlements can provide no assurance as to how the US authorities will proceed in these matters.”
A fine of $1.8bn would be one of the biggest financial penalties imposed on a British bank, but would notprevent HSBC from reporting a profit for 2012.
The bank is in the process of radically restructuring itsUS operations and is preparing to sell down some of the more than$40bn of toxic US debt it still holds on its books morethan four years on from thefinancial crisis.
Friday, 7 December 2012
China National Offshore Oil Corporation in acquisition of Nexen
Canada on Friday allowed a Chinese state-run oil giant to move forward with $15 billion takeover of a domestic energy company, but the government indicated that such deals might not pass muster in the future.
The deal - the acquisition of Nexen by the China National Offshore Oil Corporation, or Cnooc - is the latest effort by the Chinese government to find new sources of oil and natural gas reserves to helpdrive the country's growth.The state-run Cnooc has been active, striking severalpartnerships in Canada andthe United States.
Canada, in part, has welcomed the alliances.
Prime Minister Stephen Harper has been trying to create new markets to export Canadian energy, which is largely dependenton the United States for its exports. He has been courting China since the United States stalled approval of the Keystone XL pipeline project, which would move more oil sandsproduction to the Gulf Coast. On Friday, the governmentalso approved a $5 billion acquisition of Progress Energy Resources of Canada by Petronas, the Malaysian state-owned oil and gas company.
But the Nexen deal has also reignited the controversy over strategic assets ending up in the hands of foreign owners. Seven years ago, Cnooc gave up on an $18.5 billionbid for Unocal of the United States after political opposition. Two years ago, Sinochem, a Chinese chemicals maker, backed away from buying the Potash Corporation of Saskatchewan for similar reasons.
The Nexen bid prompted nationalistic concerns in Canada. Some conservative members of Parliament worried about Cnooc, which is an arm of the Chinese government, gaining control over energy assets generally controlled by Canadian provinces. Recognizing the sensitivity of the deal, Mr. Harper noted that foreign investment rules would be changed to block companies owned by foreign governments from acquiring properties in Alberta oil sands in all but"exceptional" circumstances.
"Canadians generally, and investors specifically, should understand that these decisions are not the beginning of a trend, but rather the end of a trend," Mr. Harper said at a news conference. "When we say that Canada is open for business, we do not mean that Canada is for sale to foreign governments."
It is not clear how the directive will play out on the deal-making front.
The deal - the acquisition of Nexen by the China National Offshore Oil Corporation, or Cnooc - is the latest effort by the Chinese government to find new sources of oil and natural gas reserves to helpdrive the country's growth.The state-run Cnooc has been active, striking severalpartnerships in Canada andthe United States.
Canada, in part, has welcomed the alliances.
Prime Minister Stephen Harper has been trying to create new markets to export Canadian energy, which is largely dependenton the United States for its exports. He has been courting China since the United States stalled approval of the Keystone XL pipeline project, which would move more oil sandsproduction to the Gulf Coast. On Friday, the governmentalso approved a $5 billion acquisition of Progress Energy Resources of Canada by Petronas, the Malaysian state-owned oil and gas company.
But the Nexen deal has also reignited the controversy over strategic assets ending up in the hands of foreign owners. Seven years ago, Cnooc gave up on an $18.5 billionbid for Unocal of the United States after political opposition. Two years ago, Sinochem, a Chinese chemicals maker, backed away from buying the Potash Corporation of Saskatchewan for similar reasons.
The Nexen bid prompted nationalistic concerns in Canada. Some conservative members of Parliament worried about Cnooc, which is an arm of the Chinese government, gaining control over energy assets generally controlled by Canadian provinces. Recognizing the sensitivity of the deal, Mr. Harper noted that foreign investment rules would be changed to block companies owned by foreign governments from acquiring properties in Alberta oil sands in all but"exceptional" circumstances.
"Canadians generally, and investors specifically, should understand that these decisions are not the beginning of a trend, but rather the end of a trend," Mr. Harper said at a news conference. "When we say that Canada is open for business, we do not mean that Canada is for sale to foreign governments."
It is not clear how the directive will play out on the deal-making front.
Index
A statistical measure of the state of the stock market, based on the performance of stocks. Examples are the S&P/TSX Composite Index and the S&P/TSX Venture Composite Index.
Income Trust
Also called income funds. Income trusts are trusts structured to own debt and equity of an underlying entity, which carries on an active business, or has royalty revenues generated by the assets of an active business. By owning securities or assets of an underlying business, an income trust is structured to distribute cash flows, typically on a monthly basis,from those businesses to unit holders in a tax-efficient manner. The trust structure is typically utilized by mature, stable, sustainable, cash-generatingbusinesses that require a limited amount of maintenance capital expenditures. An income trust is an exchange-traded equity investment that is similar to a common share.
There are four categories of income trusts: business trusts; real estate investmenttrusts (REITs); energy trusts; and power, pipeline, and utility trusts.
There are four categories of income trusts: business trusts; real estate investmenttrusts (REITs); energy trusts; and power, pipeline, and utility trusts.
Income Deposit Security (IDS)
An exchange-traded, fixed income-like instrument consisting of a subordinateddebt security and a share of common stock packaged together to form a tax-efficient delivery mechanism to distribute an issuer's free cash flow to its investors. Investors are paid dividends from the commonshare component and interest from the subordinated debt. The structure was created for U.S.-based companies to replicate the economic attributes of the Canadian income trust structure - providing steady, high-yield returns to U.S. and Canadian investors in U.S. companies. IDSs do not use the trust structure. Also known as income participating securities (IPS).
Improving the Market
An order that either raises the bid price or lowers the offering price is said to be improving the market. The market improves because the spread between the bidand offer decreases.
If, As & When Issued Trading
Occurs when new securities are posted for trading, and trading takes place before the closing (formal original issuance) of the prospectus. Also known as the "grey market". The term is used only for listing of new securities, either on a listing of a new issuer, a supplemental listing, or an additional listing of existing listed securities. Settlement occurs on the closing of the prospectus. The time from posting for trading to closing is generally within a week.
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