Letters
Blocking of bid by Coca-Cola will hurt China
Regardless of whether it breaches the new anti-monopoly law, Coca-Cola's HK$19.65 billion bid to acquire the Huiyuan Juice Group was a good price ('Beijing vetoes Coca-Cola bid for juice firm', March 19).
The cash offer of HK$12.20 per share gives a significant premium. Plus, the companies' combined market share will be modestly around 20 to 30 per cent.
The reason for rejecting the bid is not convincing enough. However, as Chinese citizens, most of us have a pride that China should keep a major Chinese brand in Chinese hands. To bolster the economy in the global slowdown, we had better dump such worthless pride and avoid any intention of protectionism.
Meanwhile, Chinese companies which begin their overseas acquisitions are facing similar uncertainty of regulators' approvals. The rejection of Coca-Cola and Huiyuan's marriage may hurt China's interests its own overseas forays. If it is simply regarded as a business deal, Beijing should let this good arrangement proceed.
Cindy Shi, Hong Kong Baptist University
Democrats don't deserve help