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Presenting The Main Holdings Of The Libyan Investment Authority, And Why UniCredit Is Sweating

Tyler Durden's picture




 

With pervasive shooting across Libya, stoppage of oil production, and overall revolutionary activity, it makes sense to take a look at the biggest holdings of some of the key Libyan investment players. We start with the country's Sovereign Wealth Fund, the Libyan Investment Authority. We find some interesting names...

1. Verenex Energy Inc. 100% owned by the LIA. Verenex Energy, Inc. engages in the acquisition, exploration, and production of oil and gas in Libya, France, and Canada. It carries out its activities in Ghadames basin in Libya, the Bay of Biscay offshore France, and the Bottrel area of Alberta in Canada. The company also explores new opportunities in Algeria, Tunisia, and Egypt. Verenex Energy, Inc. was founded in 2004 and is headquartered in Calgary, Canada.

2. Libyan Cement Manufacturing Joint Venture: 44% owned by the LIA. Libyan Cement manufacturing joint venture company was founded in
2007 and is based in Libya. As of March 30, 2009, Libyan Cement
manufacturing joint venture company operates as a subsidiary of Asamer
& Hufnagl Kies- und Betonwerke GmbH.

3. 11 Upper Brook Street. 9.27% owned by the LIA. 11 Upper Brook Street, London comprises commercial real estate
property which covers office space and tenanted residential property and
is located in London, United Kingdom.

4. Juventus Football Club. 7.50% owned by the LIA. Juventus Football Club S.p.A. operates as a professional football club in Italy. It participates in national and international competitions, as well as organizes matches. Juventus was the nail-biting winner of the 1995-1996 Champions Cup after penalties. The team then boasted such unparallelled names  as Vialli, Ravanelli, Jugovic, Padovano, Paulo Sousa, and of course Del Piero. Juventus has also been home to such legends as Baggio, Zidane, Inzaghi, Davids, Trezeguet, Thuram and Nedved. The good days.

5. Pearson PLC. 3.01% owned by the LIA. A media company whose profitable divisions include DebtWire, Mergermarket, DealReporter, Wealthmonitor, and Pharmawire. Other subsidiaries owned are the Financial Times, and its assorted derivatives.

and most importantly...

6. UniCredit SpA. 2.59% owned by the LIA. The Milan based bank is the largest one in Italy. It is also getting hammered right now. The reason is that in addition to the LIA, the Libya Central Bank also owns 4.05%, and the Libyan Foreign Bank is a proud owner of a 0.56% stake. Altogether Libya owns 7% in Italy's largest bank.

We, for one can't wait to read objective reports on the Libyan situation out of UniCredit (and Pearson of course).



 

 

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Mon, 02/21/2011 - 12:33 | 981764 Bearster
Bearster's picture

What on earth makes anyone believe that loot, forcibly extracted from the people, and invested on their behalf by expert central planners is superior to keeping your own money and investing it yourself (or finding an investment advisor / money manager to work with voluntarily based on rate of return)?  Sovereign wealth funds are not part of the solution; they are part of the problem.

Mon, 02/21/2011 - 15:10 | 982406 CPL
CPL's picture

Personally I'm interested to see what Dubai looks like in one month when most of it's donors are on the run from their own population.

Tue, 02/22/2011 - 23:53 | 987492 Harlequin001
Harlequin001's picture

I need to get me a small country so I can create my own money and go buy myself a few US Treasuries...

Any ideas...

Tue, 02/22/2011 - 23:41 | 987459 Harlequin001
Harlequin001's picture

There is nothing commercial about a sovereign wealth fund. Governments fund sovereign wealth funds with treasuries derived in part from their foreign exchange reserves.

For a fast look the destructive nature of these beasts, let’s assume that China conjures up a brand new truck load of new renmimbi from fresh air and uses this money to buy a US T bill. China now ‘invests’ this T bill as capital into its sovereign fund CIC which subsequently pledges it as collateral to a US Bank. The US Bank can now lend against it in magical paper dollars which CIC now uses to buy very real foreclosed properties in the US Market. These are real houses foreclosed on real people being bought by a foreign sovereign fund with collateral that started as nothing more than fresh air. This is the reality of fiat money. There should be riots.

Even if the value of US T Bills was marked down by 50% in a US default, China could simply conjure up another truck load of magical Renmimbi and buy another T Bill to make good on its collateral with the US bank. It is not a commercial transaction, it is not an economic recovery and it can last either until China’s financing costs become greater than its economy or we move back to a gold standard and then it ends staggeringly badly.

We now have a situation where a foreign government through its sovereign fund and even a domestic government through its banks can create an unlimited quantity of nothing and use it to buy up any amount of real domestic assets. That includes short positions in all commodities to suppress prices. We are moving to an economic system where prices are set not by market demand but by governments through banks and sovereign funds using derivatives and ETF’s. Only a gold standard can prevent this because only a gold standard can prevent ANY CENTRAL BANK from simply printing money in the first place. Who says that central banks have no incentive to suppress the gold price?

What do you think your chances are of competing with this? Zero perhaps or less?

Tue, 02/22/2011 - 23:50 | 987486 Harlequin001
Harlequin001's picture

Would UniCredit be worried about this? I don't think so. It's not possible for these funds to lose money because it's not a commercial transaction. Libya needs only print more money to weaken its currency and re capitalise its fund, nothing more.

If you can get a SWF to hold your stock, you're in easy street mate...

Tue, 02/22/2011 - 23:56 | 987501 Harlequin001
Harlequin001's picture

I need to get me a small country so I can create my own money and go buy myself a few US Treasuries...

Any ideas...

Are we still wondering why stock markets aren't falling?

Mon, 02/21/2011 - 12:34 | 981771 RobotTrader
RobotTrader's picture

Maybe after the carnage is over, ProShares or somebody will launch a 3x leveraged Libyan ETF.

Seems like the street always manages to capitalize on a crisis to satisfy the thirst for yet another volatile gambling chip so other fund managers can pile on and "make their year".

Tue, 02/22/2011 - 22:56 | 987335 trendybull459
trendybull459's picture

you right,they foll us allways,left and right,look at sperma bull ETFs small cap triple and bear3x TZA,its just massacre

Mon, 02/21/2011 - 12:35 | 981774 camoes
camoes's picture

Shorting italian government bonds, next EU club med country to go down, lived there in northern italy, love the people but young smart italians are just leaving the country to get meritocracy jobs in other EU countries and all is left is grumpy old retired italians, mafia and north african refugees street vendors selling fake gucci purses

Legalized nepotism: http://blog.panorama.it/italia/2008/02/01/nepotismo-accademico-se-il-pro...

Mon, 02/21/2011 - 13:06 | 981901 Caviar Emptor
Caviar Emptor's picture

Yes, its a shame but true. 

Mon, 02/21/2011 - 13:52 | 982125 streetman
streetman's picture

Don't forget crazy Italian judges who manufacture evidence to convict American teenagers of murder to avoid official censure.

Mon, 02/21/2011 - 12:36 | 981780 Monkey Craig
Monkey Craig's picture

funny that Juventus isn't having a great year either

Mon, 02/21/2011 - 19:56 | 983388 Buck Johnson
Buck Johnson's picture

You must be a fan of Mike Rivero and his whatreallyhappened site and radio show, nice pic of him. 

Mon, 02/21/2011 - 12:39 | 981787 Cleanclog
Cleanclog's picture

Just exchange a "t" for a "b" and Italy can be Libya, so maybe in a new world order, UniCredit will be the country that spans the Mediterranean.  After all, the Banks Rule!!!!  

So said the Bernank as he bestows more and more powers upon them.  And the Supreme Ruler shall be the FED.  As it was foretold more than 100 years ago.

Mon, 02/21/2011 - 12:39 | 981789 Oh regional Indian
Oh regional Indian's picture

The bank ownership is not so surprising. Those oil dollars flowed nicely into Europe, especially from North Africa, long their playground.

We shall see stranger bedfellows emerge from this mess yet. Mark my words.

ORI

http://aadivaahan.wordpress.com/2011/02/21/through-a-lens-darkly/

Mon, 02/21/2011 - 12:49 | 981831 plongka10
plongka10's picture

Unicredit are really in the merde, with huge exposure to Eastern European sovereigns. They could be the next shoe to drop.

Mon, 02/21/2011 - 12:49 | 981833 artinlight
artinlight's picture

So does Italy own part of Libya or does Italy own part of Libya?

Oh yea - it's all just banks shuffling the world around.  They want you to buy the dip now.

http://www.luminous-views.com

Stay away from value. 

Mon, 02/21/2011 - 13:07 | 981900 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Dominoes!

Juventus futbol stars will be paid in gold and Libian oil, I presume.

Mon, 02/21/2011 - 13:09 | 981914 Caviar Emptor
Caviar Emptor's picture

Left off the list: Scottish Judges' Retirement Fund (which benefited mightily prior to release of Lockerbie bomber). 

Mon, 02/21/2011 - 13:16 | 981947 The Axe
The Axe's picture

I think they own the New York Mets to???lol

Mon, 02/21/2011 - 14:11 | 982188 hugovanderbubble
hugovanderbubble's picture

Thanks Tyler

Mon, 02/21/2011 - 15:41 | 982499 Zero Govt
Zero Govt's picture

Ok, ok, TD, got the data but now what??? ...BTFD? ...short Juventas? ..go long UniCredit? ...what's THE PLAN ?!!!!!!

Answers on a Postcard to:  Slow & Retarded Investors, Libyan Opportunity Dept, Venezuela. 

Tue, 02/22/2011 - 04:24 | 984507 heorot
heorot's picture

an update..."technical" reasons force Italian Market to stay in lock down. What a coincidence...

 

ps: you forgot to mention Chiellini within the Juventus finest!!

Wed, 02/23/2011 - 05:33 | 987905 Bahamas
Bahamas's picture

Unicredit might be in the "merde" but ex ceo Alessandro Profumo just walked away with 40 million euros in the pocket as liquidation money.

That's a lot of money for 1 single man.

Cesare Geronzi, former n. of Banca di Roma (now merged in Unicredit) received 20mln a few years earlier.

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