THE PHILIPPINES / Norway --Government Privatization Please review the Philphos caselet. 1-Assume you are the undersecretary for Trade & Industry.Please state your most compelling- reasons ( at least 4) in favor of the private (non-tender) sale of Philphos to a non-Filipino buyer.(Note: among the 4 reasons , you may include reasons which support the private sale, and reasons which support a non-local buyer, or both.)

2-Assume you are Norsk Hydro (a Norvegian corporate).Please make compelling arguments ( at least three (3)) to your Board against the Philippine Government's proposal to require you, the buyer, to share in any extraordinary profits from philphos after sale for the next 5 years, even if you know this requirement will give you a benefit, that is, it will lower the upfront cash purchase price your company has to pay. [Note: if you wish to assume some numbers, assume the agreed purchase price is US$500 millions for the assets only of Philphos, but the Philippine Government is offering to accept a lower purchase price f US$450 million PLUS a profit sharing agreement for 5 years that any "extraordinary" profits will be shared between Norsk Hydro and the Philippine Government on a 60:40 basis.] [Note: Assume that there is a mutually agreed definition of "extraordinary" profits in other words, find three (3) other issues.]

Answer rating: 100% (QA)

1 Reasons in favor of the private nontender sale of Philphos to a nonFilipino buyer Increased Efficiency A nonFilipino buyer may have access to advanc... View the full answer