Only For Adventurers
This would seem a good time for shrewd investors to go rummaging for deals in Argentina's corporate bargain basement, but risk still outweighs the promise of reward for all but the most audacious buyers.
The vultures are circling a little lower over Argentina
these days, but for most of them it is still too risky to
chance a landing. Although hard-bitten private equity
investors, vulture fund managers and the odd strategic investor
are poking around, few have taken the plunge and bought up
Argentine companies so far this year. Even though it is seven
months since the government defaulted on $141 billion in debt
and then devalued the peso by 65%, the country is still too
dangerous for most investors. The outlook is scarcely any more
encouraging. President Eduardo Duhalde's grip on power is
slipping and a deal with the International Monetary Fund could
be some time in coming. GDP could fall between 12% and 25% this
year. Social unrest, unemployment, violent crime and hunger are
all getting worse. Unemployed workers habitually set up
roadblocks in Buenos Aires and around the country. Militants
Already have an account?
Subscribe now for unlimited access to all current and archive news, data and market analysis.
Take a free two-week trial now for the latest news, data and market analysis.