CFIUS ---A little history for the ignorant

Discussion in 'Middle East - General' started by dilloduck, Feb 24, 2006.

  1. dilloduck
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    dilloduck Diamond Member

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    Global Crossing Decision Underscores CFIUS’s Heightened Emphasis on National Security
    By John B. Reynolds, III
    April 28, 2003


    On Monday April 28, 2003, the Committee on Foreign Investment in the United States ("CFIUS") notified U.S. telecommunications provider Global Crossing, Ltd. that its planned acquisition by Hong Kong-based conglomerate Hutchison Whampoa Ltd. and Singapore Technologies Telemedia Pte. would trigger a formal 45-day CFIUS investigation. As explained in more detail below, CFIUS will make a recommendation on the acquisition to President Bush at the end of the 45-day period, and the White House will then have 15 days to reach a decision. Initiation of a 45-day investigation is fairly unusual and indicates that the U.S. government has concerns about the proposed deal. Indeed, press reports speculate that the U.S. government remains concerned about possible links between Hutchison Whampoa and the Chinese military. (The proposed acquisition of Global Crossing, which is insolvent, has been under discussion with various U.S. agencies, including CFIUS, for several months.) In order to assuage these concerns, it is anticipated that the parties will either withdraw their CFIUS application or substantially restructure their deal during the 45-day investigation period. The disposition of the Global Crossing case merits watching carefully because it marks the first high profile transaction in which the Department of Homeland Security, the newest member of CFIUS, has participated. It could indicate the extent to which CFIUS’s emphasis on national security concerns has heightened since September 11, 2001, and could provide clues about the level of scrutiny that future cross-border deals will receive.

    http://www.wrf.com/publication.cfm?publication_id=11330
     
  2. shepherdboy
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    shepherdboy Member

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    The WRF! Great, thats all we need to have lawyers to solve the world's problems. :)
     
  3. dilloduck
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    dilloduck Diamond Member

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    I know---amazing how we keep electing em ain't it? Being a nation of laws is such a pain in the ass. :rolleyes:
     

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