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Yard Sale: Tuesday, Dubai Municipal Building (Free Coffee!)
Returning briefly to the "Nothing to see here, please disperse..." theme, it seems that Dubai World is destined to throw some Sharpie-adorned, brown-cardboard placards up on the city's light fixtures and other signage to announce the pending garage sale. Debt Wire brings us the news:
Dubai World, the Dubai government owned firm, may resort to selling some assets or stakes in affiliates to repay dues, reported Mubasher. The report quoted unspecified sources as quoted by a newswire as saying that such assets and affiliate companies are as follows:
- DP World, a stake of 2.7% from Std Chartered, which was bought by Dubai World in 2006 for USD 1 billion
- MGM Mirage, the casino operator.
- Barneys, the U.S. luxury retailer
- Perella Weinberg Partners LP
- Cirque du Soleil
- Turnberry golf course
- Queen Elizabeth 2
- Atlantis The Palm
- London Stock Exchange
- Emirates Airline
- Dubai Aluminum Company Limited
- HSBC Bank
- Deutsche Bank AG
- Sony Corp
- EADS
- Alliance Medical Limited, and;
- Emaar Properties
The Queen Elizabeth II Rusts Slowly In The Company Of A Crane Freighter.
Certainly the news will be cause for celebration by the Brits, who were beyond outraged (though no so much that it kept Cunard from pocketing $100 million or so of Dubai's money) to learn that the vessel which only saw real re-purposing once (and then in the noble cause of carrying members of the Fifth Infantry Brigade to the Falklands so they could kill Argentines) was first to be turned into a floating hotel and then, after the envisioned guests failed to materialize, dismantled for (gulp) parts.
Bidders will likely be lining up, and not just for Dubai's assets. China, for example, might find much to like in the ripples of Dubai's distress:
Dubai's debt crisis could be China's opportunity to snap up gold and oil assets, a senior Chinese official said in remarks published on Monday.
[...]
Wu Nianlu, a professor at the central bank's graduate school, expressed concern about the safety of China's non-bond holdings. "Strictly speaking, almost half of our country's foreign exchange reserve is not stable in value and is of high risk," Wu was quoted as saying by the same paper. (Emphasis ours).1
You might not have been looking for signs of a break in China's continuing (and apparently blind) United States Treasury purchasing habit (or another reason to buy some gold) in an article on Dubai's collapse, but, at least this week, all roads would seem to lead to Dubai.
- 1. Lucy Hornby, "Dubai Woes Give China Chance To Buy Oil, Gold: Report," Reuters, November 29, 2009.
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I'll take 2 QE 2's if you give it to me the for the price of 1.
http://icanhascheezburger.com/2009/11/25/funny-pictures-praice-uf-wun/
I has read the art of the deal and know that you should not pay much for things you do not need.
I was thinking we could all pool together and re-christen it HMS Zero Hedge.
Silverdome grade bids come to mind. Creditor nations gearing up for shop-till-you-drop marathon, where hard assets are far more desirable than tankers full of fiat paper.
Except these 'hard assets' don't seem to be generating much income for their owners. How else could these debts be serviced? Liquidation sale comes to mind.
Throw in a set of stake knives and you got a deal.
C'mon, the Silverdome is in a politically stable (for now) country and locale, and in a climate where water actually falls from the sky! Yes, water! Every couple days!
How about $583,000 for all of Dubai?
Serious note: any bidders buying real property in this type of sale might want to consider the legal climate and their prospects for long-term ownership.
Michigan soon to have frozen water falling from the sky. Its called snow, freezing rain and sleet.
I am really amazed that ZH people actually remember the Silverdome. Also, Michigan's state budget could be characterized as habitually unstable.
They should solicit Bernanke to expand the Fed's balance sheet some more.
the snowboarding definition of "yard sale" also comes to mind.. :)
OOF!!
Hyman Minsky is looking down and laughing.
"...throw some Sharpie-adorned, brown-cardboard placards up on the city's light fixtures and other signage to announce the pending garage sale"
or they could just take out some classifieds in the Sunday London Times.
Who wants to spend a vacation on the beach just a few miles from Iran, Iraq, Saudi Arabia, and the rest of the crazies?
Good location for a few oil refineries, which could be 'stimulus middle east' or perhaps Dubai Energy Resources Initiative Valuation And Total Inglorous Valuable Employment.
Mind as well move off of the Dubai story and get over it. Market clearly has.
Same way as the market got over abcp in the fall of 2007. Except......
If you buy me a hamburger today, I'll gladly pay you Tuesday.
It'll be interesting to see which pieces Sheikh Khalifa bin Zayed Al Nahyan decides to buy
Luckily, I'm sure that Dubai didn't overspend for any of these assets. There ain't no smarter money than oil sheik money, as they say.
so reports are saying nakheel is going to be suspended on the dubai stock exchange today...
Looking more and more like a setup for a short squeeze, what with Abu Dhabi suddenly and with "surprise" offering to cover the shortfall.
This was such a monster setup that I have to believe the markets are ready to moonshot up.
and next time when dire events occur they will be ignored.
people are being desensitized.
If the Sheikh wants to get the best possible price he needs to open up the bidding to the widest possible audience.
Like ebay... LOL.
The Goldman Sachs connection to Dubai: http://www.bostonwealth.net/2009/11/30/the-goldman-sachs-connection-to-dubai/
Dubai musings: http://www.bostonwealth.net/2009/11/29/dubai-musings/
Why nobody is talking about the Iranian link with Dubai??
http://www.uruknet.com/index.php?p=m60604&hd=&size=1&l=e
Not sure where you are getting that from....It was all over CNBC this morning with Erin Burnett once again reporting from Dubai....
If you buy something from the "people of towelhead", make sure you have the cash to pay for it. Unlike the deadbeat "Dubai Inc", they'll put you in a jail in the desert and flog you daily if you can't pay.
Marla - can you confirm if there is a relation between Perella Weinberg and M. Benson-Perella?
Thanks.
--CS
Was this doomed from the start? The question of sustainable oil prices at or above the 100.00 mark which the UAE said was unstable and improbable so they created Dubai to ensure after the oil is gone that the country would still thrive. Now in a salvageable < a href="http://www.garagesalestracker.com">yard sale</a> assets will be sold for pennies on the dollar much to the shagrin of many residents and sheiks, but somebody has to own all those empty cars at the airport sooner or later.