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Abu Dhabi To Begin Purchasing Large Shares of General Electric

Published 07/24/08 Jeff Bennett - Print Article
E-mail - editor@economyincisis.org

The oil and dollar rich Middle Eastern nation of Abu Dhabi continues its rapid acquisition of American companies, eyeing General Electric, according to Reuters.

Abu Dhabi’s massive sovereign wealth fund was created through America’s continued oil addiction. This dollar filled fund will enable Abu Dhabi to create a joint venture with GE in the Middle East worth $40 billion. Eventually, this venture will allow Abu Dhabi’s government to become one of GE’s top-10 shareholders, possibly leading to an eventual take-over in the free market.

The nation's addiction to oil facilitates Abu Dhabi’s continual purchase of America. Abu Dhabi has already spent $1.8 billion this year on U.S. real estate, including New York’s Chrysler and GM Buildings. This oil addiction is causing a massive trade deficit, growing national debt and leaving America defenseless to international buyouts.

Source Guardian.co.uk:

The 130-year-old US industrial empire General Electric is cosying up to a Middle Eastern sovereign wealth fund in a commercial partnership that will make Abu Dhabi's government one of its biggest shareholders.

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To cement the deal, Mubadala intends to buy sufficient stock on the open market to become one of GE's 10 biggest shareholders. GE's shares rose 66 cents to $28.35 in early New York trading yesterday.

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A stream of oil-rich sovereign funds have pumped money into US companies in recent months, taking advantage of valuations hammered by the credit crunch and economic slowdown. Wall Street banks such as Citigroup and Merrill Lynch have raised billions from sovereign wealth investors and New York's landmark Chrysler building has been sold to an Abu Dhabi government fund.

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