COSCO Holdings said it respects shareholders opinions but there was no

Cosco holdings said it respects shareholders opinions

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COSCO Holdings said it respects shareholders' opinions, but there was no indication that it was considering their request. The most optimistic observers, including analyst Nie Di of investment bank China International Capital Corp. (CICC), said COSCO Holdings could avoid losses this year through acceptable accounting tricks such realizing losses before they actually occur, which could shift an anticipated loss to last year's balance sheet. Others doubt the company can avoid a loss without a huge amount of borrowing or selling some of its assets. Raising money from bonds is out of question, a source familiar with the company said, because COSCO Holdings had sold bonds worth 40% of its net assets, the regulatory limit. An internal document from a large state-owned bank shows that the loan officers were advised to reduce their credit line to COSCO Holdings over concern about its worsening financials. The company's subsidiary, COSCO Pacific Ltd. 1199, +1.92% CSPKY, -3.69% which is 42.7% held by COSCO Holdings, is helping. It is putting up for sale its entire 21% holdings in China International Marine Containers (Group) Ltd. 000039, +0.52% a container shipping operator. Those shares are valued at around 7 billion Hong Kong dollars ($897 million) USDHKD, -0.0052% or 5.6 billion yuan. That means a net a profit of 2 billion yuan for the seller, analysts said. Some institutional investors, including CICC, BOC International (China), and private equity investor Hony Capital, have expressed an interest in acquiring the shares. Some analysts said COSCO Holdings should offload its dry bulk shipping business to its parent, but critics doubt this is legal and practicable.
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Wei has reportedly appealed to the central government to bail out troubled shipping companies, including COSCO Holdings, to little avail. The state-owned assets regulator is unlikely to step in, as long as there is no egregious mistake on part of the state-owned company, an executive of an SOE said. Read this report on Caixin Online. The national flag carrier of the People's Republic of China, is one of the world's premier full service intermodal carriers. The company utilizes a vast network of ocean vessels, barges, railroad and motor carriers to link the international shipper with the consignee. Founded in 1961, COSCO has consistently been the world's fastest growing shipping company over the past decade and is now one of the largest container operators in the world. The company's core international shipping business is divided between Chinese imports/exports and cross trade cargos, Additional services offered include shipping agency services, freight forwarding, terminals and warehousing, intermodal services, insurance, real estate, as well as ship repair and manning. COSCO Container Lines, headquartered in Shanghai. COSCON I s operations are managed by regional offices in New York, Hamburg, Sydney, Tokyo, Seoul, Singapore, Dubai, Johannesburg and Beijing. 85 representative offices are maintained in 49 countries around the world, while operational agencies are located in 1000 cities in 160 countries.
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  • Fall '13
  • Containerization, COSCO, shipping company COSCO, COSCO Holdings, cosco group, China Ocean Shipping Co.

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