Sara Lee (SLE) has rejected an offer from a group of private-equity firms that includes Bain Capital, Apollo Management and TPG Capital, the New York Post reports. Overall option implied volatility of 20 is below its 26-week average of 24, according to Track Data, suggesting decreasing price movement.

PepsiCo (PEP) is expected to report Q4 EPS on February 10. Overall option implied volatility of 17 is near its 26-week average, according to Track Data, suggesting nondirectional near-term price movement.

Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.

Options Update: Sara Lee Volatility Low on Uncertainty of Buyout Discussions originally appeared on BloggingStocks on Thu, 27 Jan 2011 09:00:00 EST. Please see our terms for use of feeds.

As the economy rebounds and credit markets warm up again, it looks like private equity firms are going back to work -- on big deals. According to Bloomberg.com, Apollo Global Management is prepared to offer $12 billion for Sara Lee (SLE). The transaction would also include investor C. Dean Metropoulos -- who bought Pabst Brewing in 2010 -- as well as Bain Capital and TPG.

It looks like this is a viable offer even though a strategic buyer is interested (which often can justify a higher valuation). This is JBS SA, a beef processor based in Brazil. An acquisition would certainly have lots of synergy, creating a vertical operation. Interestingly enough, JBS may seek the help of the Blackstone Group (BX).

Continue reading Buyout Interest Heats Up for Sara Lee

Buyout Interest Heats Up for Sara Lee originally appeared on BloggingStocks on Mon, 24 Jan 2011 11:30:00 EST. Please see our terms for use of feeds.

Early Monday morning, trading was halted on Gymboree (GYMB) after an announcement that Bain Capital Partners would acquire the children's clothing company. Reportedly, the definitive agreement calls for Bain to pay $65.40 per share for Gymboree, or $1.8 billion.

According to the terms of the agreement, Gymboree stockholders will receive $65.40 cash for each outstanding share of Gymboree common stock owned. This price is a 57.4% premium to Gymboree's share price on September 30, 2010 -- the date that takeover rumors began. And the $65.40 is a 23.5% premium over Friday's closing price of $52.95.

Continue reading Bain Capital to Acquire Gymboree

Bain Capital to Acquire Gymboree originally appeared on BloggingStocks on Mon, 11 Oct 2010 11:30:00 EST. Please see our terms for use of feeds.

Continue reading Radio Shack: Takeover or Acquisition Target

Radio Shack: Takeover or Acquisition Target originally appeared on BloggingStocks on Fri, 02 Jul 2010 17:30:00 EST. Please see our terms for use of feeds.

Continue reading Have the Nerve for a Toys 'R' Us IPO?

Have the Nerve for a Toys 'R' Us IPO? originally appeared on BloggingStocks on Sun, 30 May 2010 11:00:00 EST. Please see our terms for use of feeds.

Continue reading Sensata Gives IPOs a Much-Needed Charge

Sensata Gives IPOs a Much-Needed Charge originally appeared on BloggingStocks on Thu, 11 Mar 2010 13:40:00 EST. Please see our terms for use of feeds.

Continue reading No Bargains in Private Equity, Unlike 2001

No Bargains in Private Equity, Unlike 2001 originally appeared on BloggingStocks on Mon, 01 Mar 2010 15:10:00 EST. Please see our terms for use of feeds.

Continue reading AB InBev hangs on to Beck's brand

AB InBev hangs on to Beck's brand originally appeared on BloggingStocks on Mon, 30 Nov 2009 09:20:00 EST. Please see our terms for use of feeds.

In the wake of last week's public offering of Dollar General, more IPOs are expected to be coming down the pipeline as private equity firms seek a monetary return on investments made during the boom years. Speculation is that Toys "R" Us and Dunkin' Donuts could be next.

Toys "R" Us Inc. is owned by Bain Capital, KKR, and Vornado Realty Trust (NYSE: VNO). The world's leading dedicated toy and baby products retailer was a public company from 1978 until its acquisition by the private equity consortium in July 2005 for $6.6 billion. It has more than 1,500 stores in 33 countries, and its businesses include Babies "R" Us, eToys.com, and FAO Schwarz, the latter two acquired earlier this year. Main competitors include privately owned KB Toys, as well as big-box retailers Target Corp. (NYSE: TGT) and Wal-Mart Stores Inc. (NYSE: WMT).

Continue reading Toys 'R' Us and Dunkin' Donuts in line for IPOs?

Toys 'R' Us and Dunkin' Donuts in line for IPOs? originally appeared on BloggingStocks on Sat, 22 Aug 2009 14:20:00 EST. Please see our terms for use of feeds.

Bloomberg reports that Gome Electrical Appliances Holdings Ltd. may sell up to 20% of the company to Bain Capital LLC. The asking price is said to be approximately $500 million. The other companies competing for the piece of Gome are KKR & Co. (NYSE: KFN) and Warburg Pincus.

Gome is the second-largest electronics retailer in China, with more than 800 stores in over 160 cities. So it makes a nice target for investors looking for alternatives to recession-constrained businesses in the United States, Europe and developed markets in Asia.

Continue reading Bain in lead for 20% stake in China's Gome?

Bain in lead for 20% stake in China's Gome? originally appeared on BloggingStocks on Wed, 27 May 2009 07:00:00 EST. Please see our terms for use of feeds.

The Blackstone Group LP's (NYSE: BX) $930 million purchase of GSO Capital Partners early this year didn't get much fanfare. But so far, it looks like a stellar deal.

Simply put, GSO is a hedge fund that's focused on distressed debt. Of course, with the slowing economy, GSO is in a prime spot to capitalize on some nice opportunities.

But there is more. Basically, GSO has become a key source of buyout financing (this is according to Bloomberg.com).

For example, when the Weather Channel was up for sale, it was tough to get financing for the deal. So why not GSO?

It worked. In the end, Blackstone and Bain Capital teamed up with General Electric (NYSE: GE) to pull off the acquisition. As for GSO, it provided higher-risk mezzanine debt financing.

Of course there are issues. After all, Blackstone has a conflict. But at the same time, the financial markets are mired in a credit crunch. So, if there are essentially no alternatives, GSO is probably going to provide the best offer.

More importantly, Blackstone realizes that there are some juicy opportunities right now. Thus, by having the GSO advantage, Blackstone certainly is positioned nicely.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

Blackstone's GSO keeps on giving originally appeared on BloggingStocks on Sat, 19 Jul 2008 16:40:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The Financial Times reported that Bain Capital, The Blackstone Group LP (NYSE: BX) and General Electric Company's (NYSE: GE) NBC universal will acquire The Weather Channel properties from Landmark Communications for approximately $3.2B in a leveraged buy-out. The Weather Channel will be run separately.
• A top Goldman Sachs Group Inc (NYSE: GS) trader is defecting to GLG Partners Inc (NYSE: GLG), the UK's second-largest hedge fund. Goldman's Driss Ben-Brahim, a partner in the firm and the head of its emerging market trading business, will take over GLG's $1.2B emerging markets special situations fund, the Financial Times reported.

• Take-Two Interactive Software Inc (NASDAQ: TTWO), which makes video games, will probably sign video game creator Ken Levine to a new contract. The deal would bolster Take Two's argument that its value exceeds the $25.74 per share that Electronic Arts Inc (NASDAQ: ERTS) has offered as a takeover price for the company, The New York Post believes.

• Reuters reported that Deutsche Bank AG (NYSE: DB) is the only bidder remaining for Citigroup Incorporated's (NYSE: C) German retail operations. Sources said Commerzbank AG (OTC: CRZBY) dropped out of the running on Friday.

Newspaper wrap-up: NBC Universal and consortium to acquire The Weather Channel originally appeared on BloggingStocks on Mon, 07 Jul 2008 10:50:00 EST. Please see our terms for use of feeds.

The Japanese market for buyouts is certainly alluring (basically, there is lots of opportunity to cut costs). But, it has been tough for US private equity firms to break in.

But, today there was a success: D&M Holdings Inc. agreed to a $470 tender offer from Bain Capital Partners LLC. This is according to a report in the Wall Street Journal (subscription required).

D&M sells premium and super premium audio and video products, with brands like Denon and Snell. The company got its start in 1910 and has since engaged in a variety of acquisitions, such as for McIntosh Laboratory, Allen&Heath Holdings and Boston Acoustics.

D&M does have an attractive long-term potential. After all, with the surge in wealth in Asian countries, there is likely to be strong demand for D&M products. And, with the financial backing of Bain, there are likely to be more acquisitions to enhance the D&M platform.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

Bain: a rising sun for private equity? originally appeared on BloggingStocks on Fri, 20 Jun 2008 15:31:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Wendy's International Inc (NYSE: WEN), struggling since the 2002 death of founder Dave Thomas, and pressed by investor Nelson Peltz to improve results, will today announce a deal with Peltz, the Wall Street Journal reported.
• The Wall Street Journal also reported that the House Financial Services Committee voted to approve $15B in loans and grants so that local governments can buy foreclosed homes throughout the U.S. Committee chairman Barney Frank said the bill will avoid abuse, including requiring that purchased homes be a minimum 60 days into the process.
• Adding to evidence of a rally in corporate credit markets, the Financial Times reported that Deutsche Bank AG (NYSE: DB) is preparing another big sell-off of its leveraged loans in Europe.

• Several e-mails that have been obtained by the New York Post sent between Wall Street banks may prove a serious setback in the fight over the takeover Clear Channel Communications Inc (NYSE: CCU). The e-mails reportedly show the banks, led by Citigroup Incorporated (NYSE: C) and Deutsche Bank, looking to get out of financing the buyout by Bain Capital and THL Partners by offering terms "they know the [firms] won't be able to accept."

Newspaper wrap-up: Wendy's and Nelson Peltz to today unveil deal originally appeared on BloggingStocks on Thu, 24 Apr 2008 07:50:00 EST. Please see our terms for use of feeds.

Whomever buys The Weather Channel will probably see nothing but blue skies.ss

Disney, CBS, GE, see blue skies ahead for The Weather Channel originally appeared on BloggingStocks on Thu, 06 Mar 2008 17:07:00 EST. Please see our terms for use of feeds.

Mitt Romney, the uber-capitalist candidate, bows out of presidential race originally appeared on BloggingStocks on Thu, 07 Feb 2008 13:45:00 EST. Please see our terms for use of feeds.

Not long ago, a billion-dollar private equity deal wouldn't have received much attention. But with the severe credit crunch, it's now amazing to see such a deal.

Well, we got one today; that is, the $1.3 billion buyout of Bright Horizons Family Solutions, Inc. (Nasdaq: BFAM). The private equity sponsor is Bain Capital. The debt facilities will come from Goldman Sachs Group, Inc. (NYSE: GS).

And yes, the transaction has a good amount of equity (Bain will write a check for $640 million). Basically, the debt markets are still jittery.

Bright Horizons is a provider of employer-sponsored child care and early education services. There are more than 600 customers, with 90 of the Fortune 500. Over the past year, there was about $762 million in revenues and $100 million in EBITDA, although Bright Horizons did had a tough Q3 (because of weakness in enrollment, which may have been the result of the slowing economy).

In today's trading, the shares of Bright Horizons spiked 36.81% to $44.86.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates DealProfiles.com.

Sunny days for Bright Horizons originally appeared on BloggingStocks on Mon, 14 Jan 2008 18:56:00 EST. Please see our terms for use of feeds.

Clear Channel buyout in trouble? originally appeared on BloggingStocks on Tue, 08 Jan 2008 14:58:00 EST. Please see our terms for use of feeds.

A secondary buyout is when private equity firm buys a position from another private equity firm. And with private equity deals getting tougher, we may see more of these transactions, especially from top tier firms that have lots of capital to throw around.

So today there was a biggie secondary buyout: Bain Capital, TPG Capital and 3i have agreed to purchase Quintiles Transnational.

Back in 2003, the company went private for about $1.7 billion and the private equity sponsor was One Equity Partners. Interestingly enough, TPG was an investor in the transaction as well.

With about 19,000 employees, Quintiles has a global footprint in the healthcare industry, helping companies deal with the complexities of clinical trials. Such engagements are vitally important and tend to be long-term, allowing for nice cash flows. No doubt, this is attractive for private equity operators.

The price tag on the Quintiles deal was not disclosed. But the rumor is that it was more than $3 billion.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates DealProfiles.com.

Bain, TPG in secondary buyout for Quintiles Transnational originally appeared on BloggingStocks on Fri, 21 Dec 2007 18:35:00 EST. Please see our terms for use of feeds.

This morning 3Com (NASDAQ: COMS) announced that private equity firm, Bain Capital, would put it out of its misery and pay $2.2 billion in cash for the company. 3Com has lagged so far behind that it has been painful to watch. 3Com and Cisco Systems (NASDAQ: CSCO) indeed could provide at least two to three chapters in an investing teaching and history book. Here's the CliffsNotes version:

Summer of 1994 was a tough technology environment. Technology had a great run from 1990 through 1994, till summer that is. Valuations contracted and investor fatigue set in for about four to five months. I was traveling through Silicon Valley with a couple of British portfolio managers visiting companies. One day we had a breakfast meeting with then CEO Eric Benamou of 3Com and lunch with a senior VP at Cisco (whose name escapes me). Benamou was an intellectual, a refined man, but did not possess the street smarts necessary for a tech company CEO. He was arrogant and bluntly declared that Cisco's days were numbered and 3Com would acquire any tech company necessary to achieve total domination. OK, great, and we went on to Cisco for lunch.

The senior VP was a classy guy, never said a bad word about any competitor and just explained Cisco's game plan and execution philosophy. Here is the funny part: In July 1994, BOTH companies had a market capitalization of $9 billion.

Continue reading Cisco (CSCO) today 100 times bigger than 3Com (COMS) -- it wasn't in 1994

Cisco (CSCO) today 100 times bigger than 3Com (COMS) -- it wasn't in 1994 originally appeared on BloggingStocks on Fri, 28 Sep 2007 13:40:00 EST. Please see our terms for use of feeds.