Err, no, really, just no

Tesco Plc agreed to sell its majority stake in the Turkish Kipa chain, offloading the unprofitable unit at a huge discount to its market value.

What someone will pay for something *is* its market value.

And this is Bloomberg for cryin’ out loud, not the Graniud.

6 thoughts on “Err, no, really, just no”

  1. I think they meant “a huge discount on its market value”. Either a mistype or an illiterate writer.

  2. In the meantime, over on TRUK – Gillian Tett fails to recognise the genius of Murphy’s pet solution to all society’s ills – Country by Country reporting::

    ‘Whilst much of the focus of discussion on country-by-country reporting is on the accounting information, it is also vital to realise that it requires that any multinational company disclose precisely in which jurisdictions it has operations, and what the names of its companies operating in those places are.

    There will be little better, or more effective, way of finding out what is going on in those places as a consequence than the production of public country-by-country reports, which would also have the advantage of having figures attached to the data.

    I am curious as to the reasons for her overlooking this obvious solution. Her support would be welcome.’

    And yet again, bemoaning why people won’t recognise that his ideas are those ‘whose time has come’

    ‘But although it is also, almost universally, agreed that the best agency to undertake such public works is, unsurprisingly, governments, who can fund it at present at almost no net cost at all, those governments sit back and refuse to do anything because they believe that markets must provide the solutions to all problems.

    And this despite the fact that it is painfully obvious that markets are queuing up to say to governments that they want them to deliver the solution: that is what following the money tells anyone with the willingness to see. Despite negative rates they are still buying government debt.

    We are stuck in a dogmatic pit of neoliberalism’s making from which it cannot apparently emerge. And all because politicians have sold the myth that debt is a bad thing when public debt is, in fact, the bedrock of private wealth. At some point this will be understood. I hope it will not be too late.’

    Apologies if I have ruined anyone’s morning by publishing excerpts but it is crucial the mockery and attacks on Murphy are maintained.

  3. Maybe someone offered to pay more, but they didn’t like the cut of their gib and snubbed them

  4. What did you expect? Bloomberg hires the same sort of twits from the same sort of schools as The Guardian.

    They’re Journalism majors, Tim… You know, the sort that woke up one during their junior year in college and finally realized they weren’t going to get into law school with a 2.25 GPA.

  5. “What someone will pay for something *is* its market value.”

    This is something I’ve been unsuccessfully trying to explain for years. Was trying again last week. Guy trying to base his financial strategy around the “value” of a property. There’s no such thing as value. There’s only price. Discovered in a market. There’s absolutely no market for the sort of property the guy’s got. Nada. All sellers, few or no buyers. So the “value’s” effectively zero. Or to be even more realistic, some negative value to take into consideration the costs of owning the property.
    It’s why I take a dim view of UK house “values”. There’s far too many people treating their houses as a store of wealth. They come to want to realise that wealth, they’re likely to find they’re in a market where there’s a lot of owners trying to realise their wealth, for exactly the same reasons they are. All sellers, no buyers. Crash territory.

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