Angry Danes Refuse To Sell 19% Of Their DONG To Goldman Sachs

Tyler Durden's picture

With the (emerging) world suddenly collapsing, appropriately enough on the Chairsatan's last FOMC conference, here is an amusing update from Denmark where apparently the locals are less than excited about giving away their DONG (that would be Danish Oil & Natural Gas for the perverts) to Goldman Sachs. Specifically, over the past several days, a whopping 186,000 Danes have signed a petition to stop the sale of a 19% stake with extraordinary minority stakeholder rights in DONG to Goldman Sachs. Then again, every DONG has its price...

Some background on the reasons why from the Copenhagen Post:

Resistance to the planned sale of 19 percent of the state-owned energy company DONG to US investment bank Goldman Sachs has exploded over the past few days.


An online petition against the sale has reached nearly 150,000 signatures, becoming the most popular petition ever on the website There has been more than a doubling of signatures since Saturday, when the number sat at around 68,000.


The petition, ‘Nej tak til statens salg af DONG til Goldman Sachs’ (no thanks to the state’s sale of DONG to Goldman Sachs), points out that the state-brokered deal gives the American firm veto rights over any changes in DONG’s leadership and strategy, even though Danish law states that such rights are normally only conferred with at least a 33 percent stake in a company.


Goldman Sachs’s plans to administrate its ownership from shell corporations in Luxembourg, the US state of Delaware and the Cayman Islands – all well-known tax havens – has also come under intense scrutiny.


In addition to the online petition, a protest against the planned sale of DONG has been scheduled for Wednesday at 4pm outside of Christiansborg. Some 3,000 attendees have signed up via Facebook.


Inside Christiansborg, far-left party Enhedslisten and the far-right Dansk Folkeparti have long been vocal critics of the Goldman Sachs deal. But now MPs of ruling coalition party Socialdemokraterne have spoken out against the deal, which was brokered by the the party’s own Bjarne Corydon, the finance minister.


“We need a timeout in the partial sale of DONG to Goldman Sachs,” Bjarne Lautsen (S) told DR Nyheder. “Many negative things have emerged and there has also been a new offer from Danish pension companies.”


Corydon has refuted earlier reports that the Finance Ministry was offered a bid from the pension firm PensionDanmark that was more lucrative than the one from Goldman Sachs.

The reason for the pick up in public resentment is because Corydon will face a parliamentary hearing tomorrow about the planned sale, where he is expected to be grilled by Parliament’s Finance Committee on the Goldman Sachs deal. The same committee will vote on the sale on Thursday. Despite the public scepticism of the deal, the Finance Ministry has stood by its decision and has been publicly backed by PM Helle Thorning-Schmidt.

Of course, if Goldman is involved, it guarantees future benefits for the Vampire Squid. For everyone else - except the occasional corrupt legislator - anything but.

The Danish petition can be found here.

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Dr. Engali's picture

I don't blame them. I'm rather fond of my dong personally and I wouldn't give it up to the squid either, even though they keep trying to give us theirs.

Pool Shark's picture



Why do Jewish girls only marry guys who have been circumcised?

They want 19% off everything...


EscapeKey's picture

this story actually goes much deeper, and Bjarne Corydon ought to be investigated for this. No doubt he's off to a nice comfy Goldman Sachs VP position once the government is voted out during the next election. Regardless - what do the ZH posters do? point and laugh at an amusing sounding word. sheesh.


Morten Messerschmidth made a terrific Facebook post on the topic. Here it is, translated by Bing:


Many are probably soon tire of hearing about DONG. But although the matter has been thrashed in weeks, is the most serious questions yet to be tabled. For example, have no real interest in the buyback guarantee, which the State has made. It is a pity. Because if Goldman Sachs in 2018 cannot sell its shares at a price higher than they bought into, the State has committed itself to buying them at the offer price. That's what you call a State guarantee. But what is more: The Government-guaranteed back købskurs (referred to in the media as a put option in) also includes an annual business – with retroactive effect! 60 percent of the 11 billion. DKK accrue interest at a stipulated interest rate of at least 2.25 per cent.

This corresponds to the financial terms, the State issues a claim, which accrue interest at a higher interest rate than the State itself could record a loan for. Or, to put it bluntly: We are sending money directly to Goldman Sachs and inflicts State an unnecessary interest expense. Several people have asked for the motif. Why does the State of such an investment?

There can be only one response: in order to avoid a direct borrowings that will encumber the State account public debt. The kind of look for – particularly in Brussels – crapped out. But by carrying out the transaction "off balance", posted it not as an obligation, and thus hides the statistics. A well known – but for the taxpayer dearly – trick. The funny thing is, moreover, that the Danish Government and others. has criticized several southern European countries for "off balance" entries. But as the Krag once said, you have a point of view ...

The State of Denmark so investors that they guarantee for 60 per cent of the investment – at least – get your money back plus a rate of return. But it is only step one. For such a State guarantee can belånes; probably almost 100 per cent, taking the risk on the State of Denmark is (nearly) equal to zero. And belåningen will be able to happen to a comparably low interest rate, because the interest rate as the State of Denmark the borrower to have 0.5% Bjarne Corydon has stubbornly refused to give the public an insight into the deal on DONG-all Danes estate. For the same reason we can not gain insight into Goldman Sachs ' funds – maybe they do leveraged deals. It may be that 60 per cent of the capital is borrowed and funds may not take a klink out of his pocket to buy the share.

Thus is the famous put option was for a completely free (synthetic) call option at 60 per cent stock purchase. Hexerei – nur Keine Behändichkeit: investors have an opportunity to borrow part of the 11 billion. They get the costs paid and can deliver shares free back. Share price goes down, scores well above Goldman Sachs a fine interest what the market dictates. They go up, pocketing the exchange gain (on the Cayman Islands). No matter what, so it's risk-free. Just exactly how to see a call option out. And exactly why Goldman Sachs has been able to deliver "the best bet", which the Finance Minister says.

The design allows an infinite gain the ability for Goldman Sachs. But Goldman Sachs can already choose to score a giant prize. This is done by Goldman Sach finds a corresponding listed company and sells a call option on shares of this company, where the option has a duration until the expiry of the contract. Such option will introduce a considerable amount – it can be up to several billion euros – money which the Danish Parliament gives Goldman Sachs.

But gruhistorien ends not at all here. Right now marks all over the world financial markets, the tension rises. It is a risk that the stock market has fallen about 4 years, which also means that DONG has fallen in value. Thus the shares probably will be returned. This means that the State must find 11 billion. plus interest, a total of 11.5 billion. DKK in 2018 for payment of back purchase. But around the part of stock trading on the 40% of the investment, the State can properly get trapped./population 

Here is the agreement with Goldman Sachs, to say the least woolly. These shares must be bought back to "fair value", it says. But if we can't agree on the price of the part of the shares, minority shareholder so stay there forever? And Goldman Sachs with 40% of the bought shares (less than 10% of the total share capital) maintain the blocking rights which they have now?

No one can predict the stock market. But all things being equal, Goldman Sachs will require changes of DONGs company in order to ensure a great return. Following the opinion of one of the investors in Goldman Sachs funds is telling: "One of GIP's's investors, the Oregon investment Council, said in September 2011 that Global Infrastructure Partners II was targeting gross returns of 15 to 20 percent and had a target of $ 5 billion. But GIP has since raised its fundraising target based on investor demand, with media reports suggesting the fund could now top $ 8 billion ". In other words: it is absolutely other return expectations and methods that now comes into play, and this can only be achieved through savings in DONG or price increases across the Danish taxpayers.

On his own website presents Goldman Sachs their own work as follows: "Responsiveness and Creativity. With our diverse arsenal of financial products, we craft the optimal financing solution to deliver the greatest value to all parties. Our dedicated team of investment professionals can utilize a combination of growth equity, loans, bonds, project finance, derivatives, leased, private or public capital, two beachfront and deliver creative solutions ". (my emphasis).

The company advertises directly with "creative financial solutions", and so it is those who are now collaborating with the State! It also proves that as a counterparty (in the debate about the stock price) has to do with some of the most clever brains within financial solutions. You must have great confidence in himself in the Ministry of finance! They can just as well as the wolves on Wall Street through the kind of financial constructions? I hope the. Meen ...? Worst of all, however, is that those politicians who have punished banks to make opaque financial transactions, so now even taking advantage of the same ... (Translated by Bing)
hedgeless_horseman's picture



...what do the ZH posters do? point and laugh at an amusing sounding word

Heh he........heh heh...he said, "diver's arss in hole." 

mliu_01's picture

Angry Dings Refuse To Sell DONG To Goldman Sachs

SAT 800's picture

Lady, I think you're taking this much too seriously. Even tho it is about a DONG.

EscapeKey's picture

a) my avatar i anna chapman.

b) yeah, i find it freaking hilarious that goldman sachs get a risk free $100m courtesy of bribed politicians.

SAT 800's picture

okay, you're right. (and you thought I didn't know how to get along with women). If you come over to my house, we can have a nice cup of tea and you can tell me all about it; I'm a good listener. And I love tall Brunettes.

fijisailor's picture

Denmark is a small and more unified country.  You have a really good chance to fight off this squid (GS) attack.  Don't let any more "creative" financial instruments invade your country and institutions.  DONG will be leveraged to insolvency.

atomp's picture

Can't believe I'm the first to do this, but...

"Something is rotten in the state of Denmark."

SAT 800's picture

Is this related to the failing Dong Farmers in China?

firstdivision's picture

Funny that they are trying to secure commodity businesses overseas when the US is in the process of kicking out the banking industry from owning commoditiy businesses here.  Also please note GS sale of Cogentrix and the timing of the investigations into power price manipulation by banks.

New World Chaos's picture

This is similar to what they did in New Zealand.  The prime minister, John Key, is a Wall Street puppet.  He's been selling off national assets (mainly power company shares) while Goldman Sachs skims the transactions.  The people initiated a referendum on it last year.  So they arranged a big selloff to happen right before the referendum, and now they're going to ignore the results of the referendum vote.  What are people going to do, vote Labour?  Labour is part of the problem.  They're the ones who run up the debt so the National Party can then campaign on debt reduction.  When National gains power, they sell off national assets cheaply to well-connected foreigners.  Kiwis aren't stupid enough to let Labour run up huge debts for war and bailouts, but they are suckers for welfare spending, nanny state paper shuffling... and buying back previously sold assets at premium prices.  Yes, New Zealand has been through this before.  The money goes overseas with each cycle. 

Now the power companies are sending out the lobbyists because they don't want to pay people for solar power going back to the grid.  Coincidence?  I think not.  The Squidlings want everyone on the grid as serfs.  The solution is another petition for the government to ignore: Actually, the solution is better energy storage, and there are some interesting technologies coming out for that.  Like the compressed air/heat transfer tech from  Fuck the power companies!

edotabin's picture

Squid is good one way only: Fried !

SAT 800's picture

that sign is some funny shit, man. great thing the WWW; expanding my horizons. I was in Denmark once for a couple of days, but that was thirty years ago, I missed out on this sign, for sure. Had a lot of trouble understanding what anybody was saying; and that was the ones the "spoke english".

thunderchief's picture

Good for them. Tell Goldmember where to stick their trash cash.

You're money is no good here, squid, go buy some MYRA CDO's.

The Vineyard's picture

I'm willing to sell my DONG for twenty dollars.  Any takers?  I didn't think so.

Clayton Bigsby's picture

Oh sexy American giirrlllll-frieeennnnddddddd....

hedgeless_horseman's picture



Why do they need to sell?  Are they upside down on their Long Dutch Dong position?

The_Ungrateful_Yid's picture

I made a nice living once working in a adult store selling rubber dongs.

El Oregonian's picture

Ding DONG the Witch (GS) is dead.

Clayton Bigsby's picture

No more yanky my wanky. Donger need food...

Yancey Ward's picture

I hear GS is going to employ the Lorena Bobbit strategy.

Overfed's picture

Ah. Eh.....I got nuthin;.

Ms. Erable's picture

Sounds like GS is telling the Danes just the tip.

SAT 800's picture

Right, and the Danes are telling them, don't worry we won't come in your mouth.

therover's picture


SAT 800's picture

Ron Jeremy and a 16 year old Christy Canyon; now that was PORN !; bitchaez.

Kirk2NCC1701's picture

RJ and Jeanna Fine, the Dynamic Do-Oh

Austin Powers: Yeah, baby, yeah!

replaceme's picture

19% of DONG, where is grand paw's auto-mo-bile?????

CrashisOptimistic's picture


A good site to see what the oil situation is for each country of the world.

Denmark, of course, has domestic production down to 200K bpd -- down from 400K about 10 yrs ago as the North Sea is in terminal decline for Norway and the UK, too.

So hell, if that's the extent of DONG's holdings, talk up the price and take Goldman's money (who don't seem to have done good research on this).

Save_America1st's picture

I always knew the vampire squid loved to suck on DONG.

i_call_you_my_base's picture

Goldman: no means yes!

Kirk2NCC1701's picture

They're 'French' that way:  No means Maybe, and Maybe means Yes.

Save_America1st's picture

changing name to "Goldman's DONG and Sach"

spekulatn's picture

Best headline of the far. Well done.

Bastiat's picture

We got your Dong right here pal.

Schmuck Raker's picture

Stoopid Danes, I bet they don't even know to keep their gold reserves in New York and Paris. Sheesh.

youngman's picture

I think the Danes are very Racist.....they probably do not like the Clan

_ConanTheLibertarian_'s picture

but the chicks are hot. I met them everywhere.

Kirk2NCC1701's picture

Is that a circumcised DONG?  Economic Mohels* from GS are standing by.  ;-)


Cornholiovanderbilt's picture

Muppets are no longer selling there Dong to goldman suchs.  Great development!!

J S Bach's picture

Those dang Danes and their darn DONG.