WP: China's Haier Group Withdraws Maytag Bid

[DeepModem Mom]

Haier Withdraws Maytag Bid
Move Is Sign of Caution in China's Pursuit of Foreign Firms

By Peter S. Goodman and Ben White
Washington Post Staff Writers
Wednesday, July 20, 2005; Page D02


SHANGHAI, July 20 -- Haier Group Co., China's largest home-appliance maker and primary aspirant to becoming the country's first global brand, has withdrawn from the bidding for Maytag Corp., according to a statement released by Maytag.

Haier, along with U.S. private equity firms Blackstone Group LP and Bain Capital LLC, had expressed interest in buying the Iowa appliance maker for about $1.3 billion.

Haier's decision to drop out amounts to a rare sign of caution from China as its companies aggressively pursue foreign takeovers and new markets in what Beijing has termed the "go out strategy." Analysts said it indicates that the country's largest companies -- despite their ownership by the Communist Party-led government -- have matured into legitimate commercial enterprises, undermining the notion they can tap the unlimited largesse of the state.

"The go out strategy doesn't mean companies don't care about profits and costs," said Yi Xianrong, an economist at the Chinese Academy of Social Sciences in Beijing. "If it breaks the bottom line, Chinese companies won't do foreign purchases."

Recent weeks have focused attention on the implications of China's global mission as the state-owned energy firm Cnooc Ltd. has pressed its unsolicited $18.5 billion bid to buy U.S.-based Unocal Corp. But most of China's overseas investments have focused on establishing new channels to sell its manufactured goods....


http://www.washingtonpost.com/wp-dyn/content/article/2005/07/19/AR2005071902172.html

[Wickerman]

1. Keep Maytag in Newton

that is all I ask.

The town will dry up and blow away without it.