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Publisher's Notes: Rant and You Will Receive

[CBK Digest is published for email subscribers first, then posted on CBK’s website. To sign up for to receive the email version, see box in the right hand corner of the website.]

Dear Friends:

If you read my “Publishers Notes” last week, then you know I am fed-up writing about companies “Going Private.” So what happened this week? Five more companies have gotten management-backed “Going Private” offers. Fantastic! Take your money and run cowards, run!

Upon reading last week’s “Notes,” Dan McClory, of Burnham Securities, sent me an article from the Financial Times about Focus Media, formerly traded on Nasdaq under the ticker FMCN, now eyeing a back-door, reverse merger listing on the Shenzhen Stock Exchange.

The article stated that Carlyle Group, which funded the “Going Private” merger, will likely double the $3.7 billion it put into the merger. Hmm, maybe they should pay a commission to Muddy Waters’ Carson Block for instigating the slander of Focus Media in the first place.

Clearly, Carlyle had a plan back then. I had assumed that at the time. But I was thinking it would just be a re-listing to Nasdaq or NYSE. Let’s see how many other China-based formerly US-traded companies end up on the Chinese or HKEx exchanges.

And let’s have a rousing round of applause for the cowardly short sellers, who dub themselves “independent research firms” and render the US markets a crap shoot for companies overall, no matter their domicile. I am sure their parents are proud.

Lots of pivotal news below.

Have a great weekend.

Janet Stites
Publisher & Editor
China Business Knowledge (CBK)