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Goldman Sachs moved the goalposts during the bidding process favoring China over India over an auction for the PetroKazakhstan oil group: India's petroleum minister
India learnt a hard lesson. Can American companies be ever trusted when it comes to fair bidding process? India’s petroleum minister has accused American company Goldman Sachs with lack of propriety and transparency presiding over an auction for the PetroKazakhstan oil group marred by a "lack of propriety and transparency" and where the rules were changed mid-way through to help a state-controlled Chinese oil group.
"The Indian bid was easily highest and the matter should have been closed," Aiyar was quoted as saying.
"I''m sick and tired at the lectures we are given by the west about the rules of the market, the sanctity of contracts and the need for correct procedures."
He added: "Goldman Sachs moved the goalposts while the bidding process was on, but since PetroKazakhstan is incorporated in Canada, it's for the Canadians to ensure that actions on their soil are completely legal."
China National Petroleum Corp (CNPC) won PetroKazakhstan, a Canadian company operating in the Central Asian state, from under the nose of India's state-controlled Oil and Natural Gas Corp (ONGC) and its partner, LN Mittal, despite their initially higher first round bid.
The paper quoted Goldman Sachs as saying: "We handled a fair and transparent auction."
Bankers agree ONGC's initial bid, before an Aug 15 deadline, was higher than CNPC's 51 usd per share against 50 usd but say CNPC was granted a period of exclusivity because its deal was "deliverable", the paper said.
CNPC then raised its offer to 55 usd.
The Wall Street Journal, citing people familiar with the situation, said CNPC signed a binding agreement over the weekend to sell a 33 pct stake in PetroKazakhstan Inc to Kazakhstan's state-owned oil company to secure its bid for PetroKazakhstan.
BIZ/FINANCE ARTICLES
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