This is actually more like a bailout than an expropriation. Uniper went brankrupt due to having contract obligations that were calculated with pre-war gas prices, but then having to meet these obligations with gas bought at post-war prices. Their bankruptcy was foreseeable for months. Now the government is simply buying up their stock to prevent the entire company from being liquidated.
BTW expropriations under German law are a joke, basically nationalizing here means "buying the company at regular market price".
Then once the crisis is over, the company is bankrupt, the stocks are dirt cheap, the state will sell the stocks back to private investors for pennies. That is assuming the crisis ends and the company can become profitable again (big assumption).
If the crisis does actually destroy the company then at least investors got out intact and handed off all the losses to the state
Shouldn't the US be saber rattling right about now? Or is that only when Latin America does this?
This is actually more like a bailout than an expropriation. Uniper went brankrupt due to having contract obligations that were calculated with pre-war gas prices, but then having to meet these obligations with gas bought at post-war prices. Their bankruptcy was foreseeable for months. Now the government is simply buying up their stock to prevent the entire company from being liquidated.
BTW expropriations under German law are a joke, basically nationalizing here means "buying the company at regular market price".
Then once the crisis is over, the company is bankrupt, the stocks are dirt cheap, the state will sell the stocks back to private investors for pennies. That is assuming the crisis ends and the company can become profitable again (big assumption).
If the crisis does actually destroy the company then at least investors got out intact and handed off all the losses to the state
That first paragraph used to happen in latin america a lot.
Apart from :us-foreign-policy:, the :eu-cool: is also completely neutered, not like latin america
this is in support of the US effort against russia, its cold war rules, baby
They’re blonde and blue eyed.
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