Sunday, November 14, 2010
Made in China or Bought by China........
NEW YORK—In a sign of the changing fortunes of the world's top two economies, China's biggest auto maker, SAIC Motor Corp., is negotiating to acquire a stake of about 1% in General Motors Co. worth about $500 million, according to a person familiar with the matter.
The U.S. auto maker also is prepared to sell more than $1 billion worth of shares to sovereign wealth funds in the Middle East and Asia. Combined, the sales would give foreign investors roughly 16% of the shares to be sold next week under an initial public offering of stock, and give them a stake of some 4% in the Detroit auto maker. GM declined to comment on the investment talks.
The issue of overseas investors buying GM shares in the company's IPO has been a sensitive one for the U.S. government, which plans to reduce its 61% stake in the auto maker to about 35% through the IPO.
Not only is our government taking over companies that were once privately owned, but other governments are being allowed to do the same. The new world order, ah yes, and where will it lead as far as the American worker and competing with labor rates, laws, and regulations abroad? Will the 10% unemployment rate in our country become the norm or maybe just get higher.