City of
London will disgrace and shame itself by changing its rules purely to tempt a
controversial float of Saudi Aramco state-controlled oil business.
It shows
and proves to what extent the government and City bow down to oblige the wishes
of Saudi Arabia.
Saudi
Arabia plans to float 5 percent of Aramco’s shares either in London or New
York.
The City,
so far, strict rules were refusal “premium listing” unless a 25 per cent of the
stock is sold.
Financial
Conduct Authorities proposed a “new premium listing category for sovereign
controlled companies” which would cancel the previous rule. An authority which
also does not speak much of its principals
Watchdog
said: “aims to enable companies which may (be) the subject of major
privatisation transactions to choose the higher standards of premium listing”.
The FCA
denies the intention to smoothen the way for Saudis’ float only but could not
name another company.
Saudi
Aramco is one of the most secretive companies in the world and a short consultation
process will last till October. The float is planned for 2018 and would be
worth £77billion plus assuming a few arms’ deals.
Saudi
Arabia insists on a “premium listing” only; New York has no restriction.
The float
would be a huge benefit for banks, PR advisers and lawyers and the outcome of
the decision does not need guessing.
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