[GLLUG] Will the sale of ARM Holdings be blocked by the UK government?

[Marcus Harriott]

As well as a government budget deficit of around 5 pc ( the difference  
between what the govt earns and what is spends currently around £133bn  
pa and which the government covers by issuing debt - currently £1.7  
TRILLION) the UK runs a current account deficit. In Q3 2015 this hit a  
record 7pc.  This is when we the people spend more on foreign goods  
than we sell stuff abroad. This difference must be  financed by cash  
flows inwards such as FDI (foreign direct investment) , loans and  
portfolio investment (buying shares). The government proclaims that  
this is vote of confidence in our country and this is undoubtedly true  
but there is a big difference between sending in £1bn into the country  
to build a car factory in Sunderland and selling off a job and cash  
yielding asset (like ARMH). Its a bit like selling 5pc off the value  
of your roof each quarter and saying how well everything is going...



Please note that the govt revunue figure is much worse than the £133bn  
p.a. (including interest - which the government mysteriously does not  
include..) . Because the govt constantly sells off its land ( e.g old  
airfields for housing estates) and books this as income ( and not as a  
decrease in capital assets)
Also the  government particularly at lower levels, cuts back on  
repairs and renewals (e.g. road repairs in order to continue making  
payments such as salaries pensions and benefits. This could be another  
1-3pc pa


Pensions are also underfunded or (in most cases) UNfunded and this  
amounts to an unknowable amount but likely around 2.5pc of GDP

Altogether the amount of capital that the current country is bleeding  
could be 30pc of GDP pa and getting worse...... Around 50pc of the  
value of the FOOTSIE is now foreign owned....

Most of it is not stated by government on a GAAP balance sheet (which  
companies are required to do to stop fraud) - because the facts would  
be TERRIFYING.

Meanwhile the tax base ( the fund of all companies which provide  
revenues is falling as overtaxed Brits 'sell' what is left and go to  
live in Switzerland and Singapore. taking their cash with them.

None of this is political..... its mathematics....

ARMH will probably be purchased through Ireland and Singapore so that  
no UK tax is paid ever again. Might the chinese strip out the IP  
value?? Now we are getting political....

Enjoy




> On 19/07/16 08:42, Christopher Hunter via GLLUG wrote:
>> As a shareholder, I'm certainly FOR the deal.  As a British  
>> citizen, I'm
>> also for it - the incoming investment will grow the company
>> significantly and allow them to hire more real talent.
>
> I wonder what the last foreign company Britain purchased was? I  
> wonder what the last UK company that a British consortium purchased  
> was?
>
> We're just seeing the Woolworth's syndrome all over again. Everyone  
> laments its situation but nobody wants to put their hands in their  
> pocket for it.
>
>
> -- 
> Regards
> Peter Cannon
>
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>
> "Be who you are and say what you feel because those who mind don't  
> matter and those who matter don't mind."
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