Wednesday, August 13, 2008

Carlyle Group Sells Steel Tube Maker to Russians

Days after the Russian Army steamed deep into democratic Georgia, The Carlyle Group announced the sale of John Maneely Co. to a Russian steelmaker for $3.5 billion. Carlyle paid $550 million for the firm in 2006, then added two other tube makers, Atlas Tube Inc. and Sharon Tube Co.

Note the tube connection. Didn't we accuse Saddam Hussein of taking delivery of steel tubes capable of delivering nuclear weapons, of wanting to build a super gun?

The deal is expected to close in the fourth quarter. That is if CFIS approves yet another Carlyle sale of assets for foreign companies.

Standard Aero and Landmark Aviation went to Dubai Aerospace with nary an objection from the feds, nor a peep from the media. One might expect over 50 U.S. airport operations to create a bigger furor than a handful of ports, especially given the UAE's record of bribing Saddam.

One could conclude Carlyle's money machine is a higher priority for the Bush administration, who celebrates their Pennsylvania Avenue neighbor's potential 500% profit in two years. Don't worry that a huge American manufacturer will be under the control of a firm from a "dictatorial" country.

Russian aggression will not go unanswered according to VP Dick Cheney. Of course, it will involve the sale of more steel tubes.