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TAIPEI, Aug 1 Asia Pulse - Lawmakers yesterday alleged that the government's plan to privatize state-run enterprises has been designed in such a way that only specific conglomerates will benefit.
Independent Legislator Sisy Chen said at a public hearing on the privatization of state-owned enterprises that the upcoming release of 1.5 billion shares of China Steel Corp. is an attempt to appear to divest the interest of the company while actually orchestrating the purchase of large blocks of shares by a select few conglomerates, thus rendering the privatization meaningless.
China Steel was the No. 1 state-owned steel corporation, and although the government holds less than 50 per cent of its shares, the company is, in effect, controlled by the government, because other shareholders are too small.
Chen said that China Steel's business has been declining mainly because the government fills upper management with ...
Source: HighBeam Research, CHINA STEEL SHARES MAY ONLY BENEFIT CONGLOMERATES: LAWMAKERS.