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Weak dollar prompts record foreign buyouts of U.S. companies
IHT.com ^ | 10/02/2007 | Robert Weisman

Posted on 10/02/2007 1:16:48 PM PDT by LM_Guy

European, Asian and Canadian companies are taking advantage of the weaker dollar to buy their U.S. counterparts at a record pace, increasing investment in the United States but also raising fears about a potential loss of jobs and autonomy.

"We could be looking at the world's largest tag sale if we continue to see declines in the dollar," said Donald Klepper-Smith, chief economist at DataCore Partners.

In the latest large deal aided by a weak dollar, Commerce Bancorp, which is based in Cherry Hill, New Jersey, agreed Tuesday to be acquired by Toronto-Dominion Bank of Canada in a cash-and-shares deal valued at $8.5 billion.

Nationally, the value of purchases of companies by non-U.S. buyers so far this year totaled $257.4 billion - more than in any full year since 2000, the height of the technology boom, according to Thomson Financial, a research firm in New York.

The buyouts are sparking anxiety in the United States, though their impact is complex. Foreign owners typically use acquisitions as an entry into the U.S. market and thus may be more willing than American buyers to invest in their new holdings, some economists say. But the risk is that they might also be quicker to cut back or consolidate U.S. operations when times get tough.

"Quite naturally, foreign companies want to play in this market," said Alan Tonelson, a research fellow at the U.S. Business and Industry Council, a trade group for small and midsize manufacturers. "They want leading-edge technology, and the United States is still the technology leader. But when they buy these companies, they're acquiring control over the most dynamic pieces of the American economy, and they're acquiring control over America's future."

Corporate deals are just one way the dollar's falling value is having an impact.......

(Excerpt) Read more at iht.com ...


TOPICS: Business/Economy
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"the value of purchases of companies by non-U.S. buyers so far this year totaled $257.4 billion - more than in any full year since 2000"

"the effect of foreign deals on workers and communities if decisions on jobs and plant locations are made in Europe, Asia or the Middle East"

Data that I have reviewed shows that over 800 US Corporations and Private Comapnies have been sold to forreign buyers so far in 2007.

1 posted on 10/02/2007 1:16:57 PM PDT by LM_Guy
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To: LM_Guy

The paid shills will be along soon to tell us how great the deflating dollar really is.


2 posted on 10/02/2007 1:20:22 PM PDT by mysterio
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To: LM_Guy
Didn’t we go through this in the 70’s & 80’s already?
3 posted on 10/02/2007 1:20:41 PM PDT by El Sordo
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To: El Sordo

1976, 1995, and 2000


4 posted on 10/02/2007 1:23:27 PM PDT by Mikey_1962 (Liberals want equality of outcome not equality of opportunity.)
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To: mysterio
"The paid shills will be along soon to tell us how great the deflating dollar really is."

Such pessimism. If the Mexican Peso gains enough strength against the dollar the flow of illegals will stop and then reverse itself.

5 posted on 10/02/2007 1:23:56 PM PDT by avacado
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To: mysterio

Paid shills. That’s nice. Why don’t you enlighten the thread with your strong Dollar scenarios. In reality.


6 posted on 10/02/2007 1:24:31 PM PDT by kinoxi
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To: mysterio

One sign you can’t win your argument is when you begin by questioning the motives of your opponent off-the-bat.


7 posted on 10/02/2007 1:28:16 PM PDT by 1rudeboy
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To: LM_Guy

We have gone from exporting jobs and dollars to now exporting the whole company. Summary of current administration ‘101 ways to elect Democrats’.


8 posted on 10/02/2007 1:28:41 PM PDT by ex-snook ("But above all things, truth beareth away the victory.")
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To: kinoxi

Ask him to think of the falling dollar as an increase in the tariff on imports. Mental vapor-lock certain.


9 posted on 10/02/2007 1:29:50 PM PDT by 1rudeboy
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To: mysterio
The paid shills will be along soon to tell us how great the deflating dollar really is.

But, but, but selling our industrial base to the Red Chinese is good for the global economy Who needs a job when you have stock in a China fund?

10 posted on 10/02/2007 1:30:57 PM PDT by shuckmaster
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To: ex-snook

Some irony in that your comment sounds like a Democrat campaign ad.


11 posted on 10/02/2007 1:30:59 PM PDT by 1rudeboy
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To: El Sordo

yeah remember when Japan was buying america and then it busted


12 posted on 10/02/2007 1:31:37 PM PDT by ari-freedom (I am for traditional moral values, a strong national defense, and free markets.)
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To: shuckmaster
Who needs a job when you have stock in a China fund?

And in other news, this thread is about foreigners investing in the United States.

13 posted on 10/02/2007 1:32:35 PM PDT by 1rudeboy
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To: 1rudeboy; Toddsterpatriot; expat_panama

I see Alan Tonelson is getting some ink here. We don’t hear much from him anymore since Willie left us — not that I miss either of them.


14 posted on 10/02/2007 1:33:35 PM PDT by Mase (Save me from the people who would save me from myself!)
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To: Mase

I imagine Tonelson, Hawkins, Willie, and others sitting in a circle and shaking their canes in the air.


15 posted on 10/02/2007 1:35:59 PM PDT by 1rudeboy
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To: 1rudeboy
And in other news, this thread is about foreigners investing in the United States.

Actually, what the thread say is:

"But when they buy these companies, they're acquiring control over the most dynamic pieces of the American economy, and they're acquiring control over America's future."

Anymore peanuts from the treason lobby you'd like to toss out there?

16 posted on 10/02/2007 1:38:05 PM PDT by shuckmaster
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To: LM_Guy

I did find some good in this thread....the keywords are entertaining.


17 posted on 10/02/2007 1:38:14 PM PDT by afnamvet (Duncan Hunter : THE consummate conservative.)
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To: 1rudeboy

And then their dentures fly out in a cloud of spittle.


18 posted on 10/02/2007 1:39:01 PM PDT by Toddsterpatriot (Ignorance of the laws of economics is no excuse.)
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To: shuckmaster
"But when they buy these companies, they're acquiring control over the most dynamic pieces of the American economy, and they're acquiring control over America's future."

I'll remember you highlighted that the next time GM invests in an auto plant in China.

19 posted on 10/02/2007 1:40:23 PM PDT by 1rudeboy
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To: ari-freedom

“yeah remember when Japan was buying america and then it busted”

Shuwa Investments comes to mind.


20 posted on 10/02/2007 1:41:05 PM PDT by stephenjohnbanker (Pray for, and support our troops(heroes) !! And vote out the RINO's!!)
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