Re:
— Original Message —
From: David Jackson - Istithmar
To: Sultan Bin Sulayem; Sarah Leckie
Sent: Wed Oct 21 02:57:18 2009
Subject: Re:
Agreed Sultan. I think going on the offensive on this and other matters will help. I think Sarah was trying to seek your clearance for me to do some press, including CNBC to get our side of the story. Are you OK with this approach? Sent Remotely Using BlacicBcrry
Dubai Inc. Needs Change at the Top• By ANDREW CRITCHLOW Faced with a continuing financial crisis of savage proportions. Dubai risks retreating into its past rather than facing up to its new reality. The Gulfemirate needs to radically overhaul its state-controlled companies if it is to overcome its S80 billion mountain of debt. Yet rather than seize the opportunity to introduce international standards ofgovernance and transparency, the people whose poor judgment led Dubai to the brink have kept their jobs. For western lenders with billions ofdollars still at stake, that is troubling.Take Dubai World, the conglomerate that has just been radically restructured after running up almost S60 billion of liabilities on an ill-judged acquisition spree. Its deals included buying struggling Madison Avenue retailer Bameys for $800 million, investing in an $8.8 billion Las Vegas casino development and paying $100 million for the Queen Elizabeth II liner, which has since spent most of its time languishing in a Dubai dry dock.Dubai World has now cut its work force by 15% in an elk( to save $800 million over the next three years. Surprisingly, its senior managers remain in place. including Sultan bin Sulayem, the chairman who masterminded the expansion. That has disappointed bankers who fear that, unless senior managers arc held more accountable, the mistakes of the past will be repeated.13ut holding senior Emirati officials like Mr. Sulayetn responsible for their decisions will be tricky. The Sulayem family's ties to Dubai's ruling Maktoums tun deep. Mr. Sulayem's father was a key adviser to the family. The same is true ofmany other ofthe emirate's business leaders whose reputations have been damaged by the crisis.Westem lenders would rather see experienced and suitably qualified executives running Dubai's companies with proper accountability to an independent board and creditors. Yet Dubai's ruler, Sheik Mohammad bin Rashid Al Maktoutn, appears to be heading in the opposite direction, possibly handing more power to his sons after being let down by some ofhis key lieutenants. This could mean a bigger role in Dubai's corporate affairs for the popular but inexperienced 26-year-old Crown Prince Ilamdan.Long term, this looks unsustainable. The scale of Dubai's fmancial woes means painful changes can't be resisted for long. If the easy credit of the past decade allowed officials like Mr. Sulayem to build Dubai World into a truly international company. the next 10 ears will sec banks demanding greater transparency in return for capital.Write to Andrew Critchlow at
Dear david
I know who is behind this article it Nelson Peltz I refused to accept his offer for bamcys 1 think you should talk to sarah on how we can expose nelson maybe through Bloomberg or something we need to think about this but now nelson is hitting below the belt as you know nelson was behind all the bameys articles and he met Shaikh mohammed twice about bameys and sheikh mohammed asked him to meet me
Agreed Sultan. I think going on the offensive on this and other matters will help. I think Sarah was trying to seek your clearance for me to do some press, including CNBC to get our side of the story. Are you OK with this approach? Sent Remotely Using BlacicBcrry