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Forget Greece, writes James Altucher, look at what's happening in China, where fraud worries...

Forget Greece, writes James Altucher, look at what's happening in China, where fraud worries have made legitimate companies too cheap. Harbin Electronics (HRBN +55%) could be the canary in the coal mine.
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Comments (7)
  • HiSpeed
    , contributor
    Comments (1212) | Send Message
    As of this hour, the stock trading in the 13s which makes me wonder whether or not the deal at $24 is real... very curious as to exactly how this is gonna shake out.
    20 Jun 2011, 01:20 PM Reply Like
  • alexcampbello
    , contributor
    Comments (291) | Send Message
    Tianfu Yang and Abax Global Capital to acquire remaining 59.4% stake in Harbin Electric Deal In Brief
    Tuesday June 21, 2011 14:34:28 EDT
    Jun 21, 2011 (Datamonitor Financial Deals Tracker via COMTEX News Network) --
    Harbin Electric, Inc., a Chinese developer and manufacturer of electric motors, has entered into a definitive agreement and plan of merger with Tech Full Electric Company Limited (TFECL), a Cayman Islands acquisition vehicle wholly owned indirectly by Mr. Tianfu Yang, Harbin Electric's Chairman and Chief Executive Officer, and Tech Full Electric Acquisition, Inc. (TFEA), a Nevada corporation wholly owned by TFECL.


    Harbin Electric's Board of Directors, acting upon the unanimous recommendation of a special committee of the Board of Directors comprised of solely independent and disinterested directors approved and adopted the agreement and recommended that the company's shareholders vote to approve the agreement.


    Under the terms of the agreement, each of Harbin Electric's shares of common stock issued and outstanding immediately prior to the effective time of the merger will be converted into the right to receive $24 in cash without interest, except for shares owned by TFECL and TFEA (including shares to be contributed to TFECL by Mr. Tianfu Yang, affiliates of Abax Global Capital and certain of the Harbin Electric's employees and officers (collectively, the purchasing group) prior to the effective time of the merger pursuant to a contribution agreement between TFECL, each member of the purchasing group and Tianfu Investments Limited, a Cayman Islands company directly owning 100% of the equity interest in TFECL. Collectively, the purchasing group beneficially owns approximately 40.6% of the outstanding shares.


    TFECL has delivered to Harbin Electric an executed copy of a facility agreement between TFECL and China Development Bank Corporation Hong Kong Branch (CDB), pursuant to which CDB has agreed to provide to TFECL a $400 million term loan to fund its proposed purchase of all of the outstanding shares of Harbin Electric not currently owned by Mr. Yang, Abax and their respective affiliates, subject to certain conditions.


    Further, Tianfu Investments and Abax Global Capital have entered to agreements, pursuant to which Abax Global Capital would provide debt and equity investment of an aggregate amount of up to $63.8 million. Abax Global Capital is an alternative investment manager with head offices in Hong Kong and offices in China.


    The transaction is expected to close in the fourth quarter of 2011. If completed, the transaction will result in Harbin Electric becoming a privately-held company, and the shares will no longer be listed on any public market.
    21 Jun 2011, 11:37 PM Reply Like
  • Rhianni32
    , contributor
    Comments (2079) | Send Message
    James Altucher is crazy. Greece doesnt matter because of the size vs EU. Yep just like Lehman Brothers didn't matter because of its size vs the US.
    20 Jun 2011, 02:09 PM Reply Like
  • Duude
    , contributor
    Comments (3401) | Send Message
    I'd rather forget Altucher.
    20 Jun 2011, 02:54 PM Reply Like
  • radicall
    , contributor
    Comments (531) | Send Message
    James Altucher also thinks Dow is going to 20000 by next year.
    20 Jun 2011, 05:52 PM Reply Like
  • new slang
    , contributor
    Comments (171) | Send Message
    I don't know, I have to agree with him. Why does this not make sense? Do you believe the majority of reverse mergers are frauds? Pretty sure some of these Chinese companies are legit - and are therefore dirt cheap currently.
    21 Jun 2011, 12:29 AM Reply Like
  • alexcampbello
    , contributor
    Comments (291) | Send Message
    21 Jun 2011, 09:06 AM Reply Like
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