m & a, bptmust be on china's radar, page-28

rudders,

1. I operate as a Self Managed Superannuation Fund. It is required that I operate the fund purely in the best interests of the fund (that is financial best interest). To do otherwise risks the fund being declared non-compliant.

2. If the Australian government deems it appropriate to allow China to invest in Australian Oil and Gas compamies, who am I to disagree.

3. Future generations need to look after themselves. I am not their guarduan. I need to increase my wealth for my retirement so that I am not a burden on the next generation and any increase in my residual wealth after I have entered Nirvana will go to my dependants who will be able to support themselves better, buy things and otherwise provide jobs with what was my money. In fact future generation will likely not thank you if shareholders are denied taking the best price for their shares.

4. If say Beach was sold to foreign interests provided the price is right for the remaining risks of production and exploration, we are no worse off economicly. In fact, whoever purchases Beach (should that ever happen) is likely to have considerable more funds to through at exploration and production than Beach currently has. That would be a benefit to the nation.

5. My objection to the original comments was that they appeared to purely against China's investment. (i.e. implied other countries similarly investing was acceptable). It appears that was not the intended impression and that it was about "not selling the farm" to anyone other than Australian interests. I accept that as a valid argument even though I strongly disagree with it. I will try to give some of those arguments below.
a) If we refuse to allow foreign investment in any area, then you cannot blame other countries refusing to allow Australian to invest there. Economics teaches that makes both countries poorer.
b) Investors are being denied the best price for their shares by excluding a class of bidders.
c) Ultimately the strategy of keeping it Australian may well fail. For example, if say SANTOS bought beach who is to say that SANTOS will remain Australian. Former shareholders of Beach will have no or little say as they either no longer own the shares are are a small part of a larger company. All that has happenned in denying a foreign takeover is that the former shareholder of Beach have less money than they otherwise would have.