International -- Readers Report
THE GLOBAL 1000: TWO ADMONISHMENTS (int'l edition)
I read with interest your comprehensive article about the world's most valuable companies, "The Global 1000" (Cover Story, July 10). However, there is an omission. Saudi Basic Industries Corp., the Riyadh-based petrochemical and metals conglomerate, had a market capitalization on June 2 of $9.8 billion, according to our calculations. This would put it 258th, after Abbey National.
Etisalat, the second-most-valuable publicly listed Arab company, was worth $4.1 billion, based on its share price in mid-June, so it too should be included in your listing. Don't ignore the rising companies of the Arab world. Some are already forces to reckon with.
Editor's note: Because Saudi Arabia's equity market is not sufficiently open to foreign investment, Morgan Stanley Capital International, our data provider, does not include Saudi companies.
Your Global 1000 article uses methodology that minimizes--indeed, virtually erases--some of the most important and fastest-growing companies in the world: South Korea's chaebol. You only list these conglomerates' separate component companies (Samsung Electronics, Hyundai Motor, etc.).
In reality, the chaebol function as single groups, often controlled by one man (such as Samsung's Lee Kun-hea) and advertise under a single brand image.
Also a problem: listing "emerging markets" as a separate category. Ever heard of globalization?
Editor's note: When putting together the Global 1000 and the top 200 emerging-market companies, it is BUSINESS WEEK's policy not to aggregate the market values of related entities that are publicly listed as separate companies.