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.
- 1 Tunisia hotel attack: Locals form 'human shield' to protect hotel from gunman Seifeddine Rezgui
- 2 David Cameron refers to 83-year-old Labour MP Dennis Skinner as 'Jurassic Park'
- 3 Alton Towers Air breaks down: 80 people stuck on broken down Monorail during heatwave
- 4 German ethics council calls for incest between siblings to be legalised by Government
- 5 Alwaleed bin Talal: Saudi Prince to donate entire $32bn fortune to charity
Tunisia hotel attack: Locals form 'human shield' to protect hotel from gunman Seifeddine Rezgui
The map showing the most dangerous tourist destinations in Europe, according to the Foreign Office
German ethics council calls for incest between siblings to be legalised by Government
Alwaleed bin Talal: Saudi Prince to donate entire $32bn fortune to charity
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
The moment a Queen's Guard soldier lost it and drew his gun at annoying tourist
Greece crisis: IMF was pushed around by Angela Merkel and Nicholas Sarkozy – and now it is being humiliated
'I wish the BBC would stop calling it Islamic State' – David Cameron unleashes frustration at broadcaster
Greece crisis: The wider lesson is that it’s time to abandon this failed experiment in currencies
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
They are neither a 'state' nor 'Islamic': Why we shouldn't call them Isis, Isil or IS
iJobs Money & Business
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...
£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...
£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....
£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...