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Personal finance observation, musing and decisions in a journey toward financial independence by 36 with at least $1 million.

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The China Price





More will come.

From Slate:

The New China Price is on vivid display today over at Maytag. Once the great symbol of American reliability in appliances, Maytag has exhibited all the signs of a company adrift in recent years. It's been losing market share and going through CEOs the way Elizabeth Taylor ran through husbands. In May, the private equity firm Ripplewood Holdings agreed to buy Maytag for $14 per share in cash. But Monday evening, Maytag said that Chinese appliance maker Haier, which already has a plant in South Carolina, had teamed up with Blackstone Group and Bain Capital to make a preliminary offer of $16 a share.

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The advent of Chinese firms as players on the international mergers-and-acquisitions scene won't necessarily lead to a golden age of bidding wars. You wouldn't expect a China Price for Neiman Marcus, for example. But for beaten-down companies that make auto parts or ball bearings, why not? And in areas in which China has great needslike natural resourceseven comparatively healthy companies can expect higher bids from Beijing.

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