Wednesday, March 03, 2004
Hong Kong Capitalism: You have two cows. You sell three of them to a publicly listed company using letters of credit opened by your brother-in-law at the bank, then you execute a debt/equity swap with associated general offer so that you get all four cows back with a tax deduction for keeping five cows. The milking rights for six cows are transferred via a panama intermediary to a Cayman Island Company secretly owned by the majority shareholders, who sells the right to all seven cows' milk back to the listed company. The annual report says that the company owns eight cows with an option on one more. Meanwhile you kill the two cows because the feng shui is bad.
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