Recently,Thai court seizure 46-billions baht from former prime minister Thaksin Shinawatra .The origin of this trial come form Selling shin corp to Temasek.The former prime minister Thaksin Shinawatra has a conflict of interest in policy corruption because he introduced policies to benefit the stocks of of Shin Corp before he sold his company to Temasek. Similarity, the article "Call waiting: Italy’s biggest telecoms firm faces an uncertain future" shows that Italy also has a scandal on selling telecom italia to foreign inverstor .
Two year ago,Telecom Italia had a leverage buy-outs which cause Telecom Italia with a massive burden of debt. Therefore,Italian goverment sold the share to a group of invertors to take control of the operator.Unfortunately,the price of its shares has fallen by more than half since they took control due to declining revenues and concerns about its debt.It is an controversy issue when Telefónica want to buy Telecom Italia.Selling Telecom Italia to a foreign company is probably still unacceptable because Telecom Italia’s profits in both its fixed-line and its mobile business depend on the government supports.
In my opinion, I support Italian goverment to sell Telecom Italia to Telefónica. I think that government should not continue to operate state enterprises because it lack of efficiency to manage.Morever, it is not a free trade when government give a favour on its state enterprise to compete with private business. There is a case study on TDC which Dennish government sold to a private fund-KKR. After KKR accquire TDC, it has shown that TDC have a better profitibility and better of service.
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References
Call waiting: Italy’s biggest telecoms firm faces an uncertain future.(2010, March 4). The Economist. Retrieved March7, 2010 from https://www.economist.com/businessfinance/displayStory.cfm?story_id=15612237&source=hptextfeature
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