AltaLink/Berkshire Hathaway Sale Poll - Is Alberta still open to Foreign Investment?

[Agamemnon]

Hello all, it's been a while since I graced the forum but this is an issue I'm very interested in.

AltaLink (a main transmission electricity utility in Alberta) was recently conditionally sold to Berkshire Hathaway (Buffet's company). The Calgary Herald has come out with a poll asking people if they are in favour of the Berkshire takeover.

It would be great if we could get a lot of Albertan's opinions and input on this issue, as I know there are decision-makers interested in the outcome of the poll.

My thought; Alberta should be open for business and looking to attract foreign investment. This province (and country) couldn't have been built without foreign investment, and if we start closing our borders to foreign investment we send a clear signal that we are no longer a business-haven for foreign companies.

I voted yes to the poll, I'd appreciate it if everyone could have their voice be heard on the issue as well!

Thanks all!

http://www.calgaryherald.com/opinion/index.html
(Poll is about midway down the page; "Do you approve of the sale of AltaLink to U.S.-based Berkshire Hathaway?")

[lazypucker]

I speculate there will be a lot of NO's on the poll. This acquasition is similar to CNOOC buying Nexen, where a foreign investor buying an O&G/Utility asset.

But personally, I do think it is a good idea for the governments to open up foreign investments in the country. It just needs to be done diligently.

[CaptainYooh]

Could be moved to this thread: http://forum.calgarypuck.com/showthr...Link+Berkshire

[Agamemnon]

Originally Posted by CaptainYooh

Could be moved to this thread: http://forum.calgarypuck.com/showthr...Link+Berkshire

Yeah I saw that, just concerned a post regarding the poll would get instantly lost.

Yes, there are a lot of "No" votes so far, which is why I'm trying to get more people involved in the poll.

I understand the arguments on both sides of the equation, but I think if we privatize our transmission industry (as we did), but then prevent foreign investment in it, that we kind of hamstring the whole purpose of having a private transmission industry (efficiency, for-profit business motivations rather than government utility waste).

Vote 'yes' to foreign investment in Alberta!

[Azure]

First of, holy crap an Agamemnon sighting!

And second of all, Alberta should be elated that Berkshire has chosen to invest there.

[CaptainYooh]

People, in general, don't bother trying to understand various aspects of foreign investment into different business operations. In case of AltaLink, this actually does make sense.

AltaLink delivers its revenue from a few very large corporate customers (i.e. Enmax, Epcor etc.). This revenue is based on the fixed return on assets that is strictly regulated by AUC/AESO. In essence, AltaLink's business is not dissimilar to a variable bond investment. When I read Corbella's argument against selling AltaLink to Buffett it is very apparent to me that she is only voicing Nancy Southern's concerns who's (legitimately) worried about losing ATCO's and CU's market share in Alberta utility system. The fact is, Buffett cannot take the electric transmission system away from Alberta. He can only take away the return on his investment in it. Does it make a lot of difference if this profit goes to SNC Lavalin's shareholders' (who are international) or Berkshire Hataway's shareholders? I'd say, absolutely not.

I do have a different opinion on foreign investment in strategic resources owned by the people of Alberta (Canada) but this is would be off-topic here.

[Flamenspiel]

Originally Posted by lazypucker

I speculate there will be a lot of NO's on the poll. This acquasition is similar to CNOOC buying Nexen, where a foreign investor buying an O&G/Utility asset.

But personally, I do think it is a good idea for the governments to open up foreign investments in the country. It just needs to be done diligently.

I agree generally its a good idea but CNOOC is not a business its run by the Chinese governement and more of a strategic asset that is not run on a profit basis. That is not the same as selling to a private enterprise.

[Agamemnon]

Originally Posted by Azure

First of, holy crap an Agamemnon sighting!

And second of all, Alberta should be elated that Berkshire has chosen to invest there.

Haha, been a long time since I had an Azure run-in.

[lazypucker]

Originally Posted by Flamenspiel

...but CNOOC is not a business its run by the Chinese governement and more of a strategic asset that is not run on a profit basis...

Are you kidding me? Everyone is in the business to make money, or prevent perceived enermies (read: the US) to make money,,,

[Agamemnon]

Just a quick bump, poll closes soon! Make sure your voice is heard!

http://www.calgaryherald.com/opinion/index.html
(Poll is about midway down the page; "Do you approve of the sale of AltaLink to U.S.-based Berkshire Hathaway?")

[V]

Originally Posted by Flamenspiel

I agree generally its a good idea but CNOOC is not a business its run by the Chinese governement and more of a strategic asset that is not run on a profit basis. That is not the same as selling to a private enterprise.

You have an interesting interpretation of State Owned Enterprises.

[Frequitude]

Yes, Berkshire should be allowed to buy Altalink. In fact, Albertans should be extatic that Berkshire wants to invest here. This province needs hundreds of billions of dollars of capital for development which means it must come from international sources.

I couldn't think of anyone better. They take a pretty hands off approach and have no need for cash to be dividended off. They simply want it reinvested in the company so they can one day sell it for more than they bought it for.

This whole campaign against the sale is probably fueled by the Southern family hoping that they instead can snap it up.