Tue Jun 6th, 2006 at 01:26:59 AM EST
While Western media cheifs castigated Putin in Kremlin
their servants like Andrew E. Kramer from NYT quietly continue malpractice of distorting Russian reality.
Let's have a look at his article:
As China Makes Strides, Russia Stumbles Out of the Stock Offering Gate
AT the start of the year, Russian companies had high hopes of raising billions of dollars in stock offerings, tapping into investors' zeal for emerging markets. Twenty-five initial public offerings were planned -- nearly twice the number of 2005.
Then, reality started to hit.
Russia's state oil company Rosneft started the year with an announcement that it planned to raise $20 billion in a stock offering, in what would have been the largest such offering in corporate history after NTT DoCoMo telecommunications company's $18 billion offer in 1998. But the Rosneft offering is now expected to be closer to $10 billion when it finally comes to market next month.
Who said Rosneft should offer more than it needs? For purchase of 10% of Gazprom last year it raised 7.5 bln dollars. This sum will be easily reached.
In April, Morgan Stanley backed out of a stock deal for Cherkizovo Group, a meat processing company, in a dispute over the company's worth.
To it's own chagrin. Cherkizovo easily raised almost 1 bln dollars on domestic market. Really expensive sausages. Any suggestions where Rosneft will get more money - in Russia or in London?
Then, just last week, CTC Media Inc., a network of television stations, became the first Russian company to list on Nasdaq -- but only after reducing its asking price to $14, below the $16 to $18 range recommended by Morgan Stanley and Deutsche Bank, the two underwriters. The stock closed at $17.40 yesterday after reaching as high as $18.75 during the day.
This is difficult to interpret as a failure.
The setbacks give the appearance of a wholesale Russian retrenchment rather than a retreat by one or two troubled companies.
This is very biased and misleading assumption.
Russia's stumbling contrasts with its emerging market rival, China. On the same day of CTC Media's trading debut, the Bank of China raised $9.7 billion in the world's biggest share offering in six years.
The shortfalls suggest that Russian companies are going public too early, for the wrong reasons, or are valuing their shares too high, critics say. Investors have also raised questions about the lack of transparency in accounting at some Russian companies and the shortfalls in corporate governance standards.
This winter, for example, RosUkrEnergo, an offshore energy trader handling Gazprom's deals with Turkmenistan and Ukraine, improbably said that it would go public -- though it is so secretive it has no listed telephone number.
Then, last month, an article in Forbes magazine quoted the chairman of the board of Kuzbassrazrezugol, a Siberian coal company with a stated goal of going public, explaining his management practices. They included threatening employees with death.
In the case of Rosneft, the Russian state oil company that was a beneficiary of property taken from Yukos in a politically tinged tax dispute in 2004, the threat of lawsuits by Yukos shareholders has reduced enthusiasm, though the oil operator controls nearly as much reserves as Exxon Mobil.
What has offshore RosUkrenergo, operating in Ukraine and Turkmenistan in common with Russian IPOs - ask NYT.
Argument about Kuzbassugol is simply ridiculous. It's western companies who intimidate their workers with death threats and death squads. In USA trade unions have persistently been facing massive police and criminal repressions. Remember Al Capone's source of money? Right, American government and big business.
The Rosneft is Russian company operating in Russia and I did not hear about any lawsuits against it from Yukos shareholders in Russia.
By the end of this year, 25 Russian companies will probably have held public offerings, up from 13 last year and 6 in 2004, according to a study by Ilya V. Sherbovich, director of investment banking at Deutsche Bank in Moscow.
In the entire preceding decade after the breakup of the Soviet Union, only 13 Russian companies held initial public offerings.
This passage again contradicts with intention of author.
Among emerging market economies, Russia was in eighth place last year in number of initial stock offerings, behind Israel and Poland. But measured by the value of stock issued, Russia, with $5.2 billion, was in second place behind China, with $19.4 billion, according to the report.
This year, Russian offerings are expected to yield $17.5 billion, closing in on China, though much depends on what happens with Rosneft's offering.
This is conclusion. Again Russian companies are expected to raise record money from their IPO's what NYT beloved marketistas like Chubais and Gaidar and Yavlinsky could not acheive (2nd place right after China).
It's a shame that NYT readers have to read such anecdotic crap every day.