Billiton pulls out of bid for CVG
Friday 04 September 1998
"The state of the world economy and global financial markets had presented the consortium with unanticipated challenges and made it increasingly difficult to bring the consortium's preparations to bid to a successful conclusion," the company said.
The British-based firm led the sole consortium qualified to bid for 70 per cent of the CVG aluminium assets which the Venezuelan government is trying to privatise for the thrid time next week, at a base price of $1.55bn (pounds 930m) .
The group, which also includes Kaiser Aluminium and Venezuela's Sural, was also the only bidder in July's sale attempt of the loss-making complex, which produces 4 per cent of the world's aluminium. But the consortium withdrew at the last minute over differences in the make-up of the consortium. The first attempt to privatise CVG failed in March when prospective bidders withdrew.
Industry sources said the financial turmoil in global markets probably made it difficult for some consortium partners to obtain adequate funding.
The economic crises in Russia and Asia also raised concerns about investment in emerging markets generally, while specific concerns have increased over the political and economic position in Venezuela, sources said.
The cancellation of the auction is a fresh blow to Venezuela's image, as foreign investors had been looking to the long-delayed privatisation for reassurance that economic reforms were on track.
Billiton shares yesterday fell 1p to 113p.
Actress sees off speculation about her appearance in an amazing way
Review: Despite an uphill climb to see Jake Bugg in action, his performance is notably flat
Powerful images of strays taken moments before being put down
Review: Witty banalities aside, the comedian has an authentic voice
The Washington Post editor helped Bob Woodward and Carl Bernstein bring down President Nixon
- 1 Salisbury ranked seventh-best city in the world to visit in Lonely Planet’s Best in Travel 2015
- 2 Disney announces new female-led film Moana
- 3 Banksy not arrested: Internet duped by fake report claiming artist's identity revealed
- 4 Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
- 5 Russell Brand threatened with arrest after filming outside Fox News headquarters
Chicago voter tells Obama 'don't touch my girlfriend' – Obama stays super smooth
Oscar Pistorius: The brutal prison life that awaits disgraced athlete
Banksy not arrested: Internet duped by fake report claiming artist's identity revealed
Raphael Ravenscroft dead: 'Baker Street' musician who played the most famous saxophone solo for just £27, dies aged 60
Darren Vann: Indiana man arrested for murdering teenage prostitute confesses to six other murders - and police fear more
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
London bus driver 'kicks gay couple off for kissing'
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Jose Manuel Barroso warns David Cameron against making 'historic mistake' over immigration reforms
iJobs Money & Business
£18000 - £23000 per annum + Commission: SThree: The SThree group is a world le...
£18000 - £23000 per annum + Comission: SThree: The SThree group is a world lea...
£20000 - £25000 per annum + OTE £Competitive: SThree: SThree Group and have be...
£23000 per annum + pension and 22 days holiday: Ashdown Group: An established ...