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New bullsh*t about Russia from NYT

by FarEasterner 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.

This bit here is the worst:

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.

How can you contrast two different share bids, when the companies, value of shares, amount of shares are different? What's more how can you use the word "stumbling" applied to "Russia" as a whole, because of one-two bids that turned up a little lower than announced? And since then can "Russia" be equated to two Russian companies.

This is all ridiculous, I agree.

by Alex in Toulouse on Tue Jun 6th, 2006 at 03:03:22 AM EST
While there's a lot to be said about the Rosneft IPO (and a lot of serious criticism to make), this has indeed to be the silliest argument to criticise it.

They are selling less of the company because it is worth more and they don't need to sell as big a share to raise the required money - and that's bad news? Russia will be getting the targeted $10bn by selling 10-15% of the company instead of 30-45% as initially contemplated and that's bad for Russia?

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Tue Jun 6th, 2006 at 04:44:41 AM EST
If it makes you feel better, just about everything printed in the NYT is bullshit, so it's not a personal vendetta against Russia.  

It's a personal vendetta against Russia, France, Europe, the Middle East, Democrats, Liberals, Progressives, Socialists and anyone who values intellectual honesty.  

Those who can make you believe absurdities can make you commit atrocities. -Voltaire

by p------- on Tue Jun 6th, 2006 at 08:25:19 AM EST
 Where you have to take some heart is in the fact that there are some substantial number of people who recognize that "just about everything printed in the NYT is bullshit," and that, thus, this report, whether or not it deserves to be seen as a  "personal vendetta against Russia," is dismissed by a perhaps growing number of people in the world--numbers which increase in direct proportion, perhaps, to their distance from New York and Washington.

 I think that is poemless's point and I agree with it.

 Bush has lost most of his credibility--and with me, he never had any, Washington "authority" has lost much of its credibility, the U.S. "mainstream" press, not to mention the world-wide press, has lost much of its credibility.

 I don't even read the New York Times anymore; and I was for years a subscriber!

"In such an environment it is not surprising that the ills of technology should seem curable only through the application of more technology..." John W Aldridge

by proximity1 on Wed Jun 7th, 2006 at 06:48:54 AM EST
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