TPG deal in China at risk over dispute (business confiscated or lost?)

FT ^ | 11/20/08 | Henny Sender

[TigerLikesRooster]

TPG deal in China at risk over dispute

By Henny Sender in New York

Published: November 20 2008 00:01 | Last updated: November 20 2008 00:01

TPG, the US private equity firm, risks losing a substantial investment in a Chinese leasing venture after a business dispute in which the company’s local staff called in police to remove TPG’s representatives, people familiar with the matter say.

The difficulties that developed between TPG and local managers of Nissin Leasing (China), a subsidiary of Japan’s Nissin Group, underscore the risks of investing in China and come at a particularly bad time for the US private equity firm.

Less than two months ago, TPG lost all of its $1.3bn investment in Washington Mutual, a US bank based in Seattle, Washington, that was sold to JPMorgan Chase in a transaction that wiped out debt and equity holders.

[TigerLikesRooster]

This is a way you could lose business in China. Those who are still fantasizing a billion people market may have to think again. Even when the billion men market eventually materialize, you won't be the one who makes money hands over fist. It would be mostlyl Chinese show, and you may have to settle for scraps.

[TigerLikesRooster]

Ping!

[TenthAmendmentChampion]

Keep remembering: "private" ownership, government control = fascism. And control > ownership.

[jackofhearts]

Federal govt owns the banks, might take over auto industry, has its sights on the healthcare industry, controls education...what’s left? The local barber?

[PAR35]

Sounds like that company has really weak management all the way around, and were too lazy to develop local connections that could be called upon when needed.

[LurkingSince'98]

hey Tiger,

It’s just payback for the billion Dollars the Chinese lost investing in Blackstone.

Lurking’