Chas­ing re­turns?

Finweek English Edition - - Front Page - PUZ­ZLED

I FIND IT RE­MARK­ABLE that David Shapiro would call Aveng a “good op­er­a­tion with a lot of prospects” in the same is­sue of Fin­week that high­lighted the work the Com­pe­ti­tion Com­mis­sion is do­ing to un­cover col­lu­sive be­hav­iour in the steel in­dus­try (25 Septem­ber).

Just weeks ago the com­mis­sion pro­hib­ited a merger by one of Aveng’s op­er­a­tions, say­ing that all par­ties to the merger were in­volved in car­tel ac­tiv­ity, meet­ing to ex­change in­for­ma­tion and fix prices. At some point the in­vest­ment com­mu­nity needs to ask it­self whether chas­ing re­turns at the ex­pense of a com­pet­i­tive econ­omy with a func­tion­ing down­stream in­dus­try is good for their port­fo­lios, let alone the coun­try.

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