Not long ago, the private equity firm, Fortress Investment Group LLC (NYSE: FIG), appeared to be in deep trouble. But things are looking better now, as the stock price has gone from $1 to $4.65 this year.

In fact, Fortress is now pulling the trigger on some deals. Just this week, the firm teamed up with Crestview Partners LP and Lightyear Capital LLC to invest $450 million in First Southern Bancorp (Lightyear is operated by Donald Marron, who was the former chief of PaineWebber Group).

Continue reading Fortress storms a bank

Fortress storms a bank originally appeared on BloggingStocks on Sun, 31 May 2009 14:10:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Barnes & Noble Inc (NYSE: BKS) is considering a bid for rival bookseller Borders Group Inc (NYSE: BGP), the Wall Street Journal reported, a move which would allow Barnes & Noble to improve profits and reduce costs. Antitrust issues could prevent a deal.
• The Wall Street Journal also reported that Carl Icahn's effort to remove Yahoo! Inc's (NASDAQ: YHOO) board has picked up new supporters, including T. Boone Pickens, who acquired a 0.75% stake. Some Yahoo shareholders believe it is still too early to predict whether Icahn will be able to carry July 3's shareholder vote.
• A Financial Times investigation discovered that Moody's Corporation (NYSE: MCO) incorrectly awarded top ratings to billions of dollars to debt products due to an error in its computer models. Moody's said it is in the process of "conducting a thorough review" of the rating of the constant proportion debt obligations, which should have been up to four notches lower.

• According to the people briefed on the matter, the New York Times reported that the buyout of Penn National Gaming Inc (NASDAQ: PENN) by Fortress Investment Group (FIG) and Centerbridge Parters may involve revised terms. The sources said the negotiations may "delay or even imperil" the deal.

Newspaper wrap-up: Barnes & Noble may bid for Borders originally appeared on BloggingStocks on Wed, 21 May 2008 08:00:00 EST. Please see our terms for use of feeds.

DOW JONES & COMPANY (NYSE: DJ)

Continue reading This week's rumor round-up: Will News Corp pull its offer for Dow Jones?

This week's rumor round-up: Will News Corp pull its offer for Dow Jones? originally appeared on BloggingStocks on Fri, 15 Jun 2007 15:30:00 EST. Please see our terms for use of feeds.

DaimlerChrysler AG's (NYSE:DCX) is now looking for "serious" bidders for its money-losing Chrysler, unit, according to well-timed leaks to the media.

I always read about "serious" bidders in every prolonged mergers and acquisitions story. What the heck does that mean? Are their half-hearted bids? Joke bids? Of course not. This is just a stupid bit of jargon.

Getting back to Daimler, the automaker is hoping to narrow down the list of potential buyers before its April 4 shareholders meeting. Cerberus Capital Management and a group lead by Blackstone Group and Centerbridge Partners are the interested bidders, according to the Wall Street Journal.

It's interesting that most companies and investment bankers will never publicly discuss mergers and acquisitions with the media but will blab about them endless on a not-for-attribution basis when it serves their purposes. Daimler needs to show its shareholders that it's serious about unloading Chrysler. Bankers need to show current and potential clients that they are in the hunt for big deals.

They both have to plot their strategy without giving too much away to the press otherwise they will appear to be weak but they need to keep the story going. That's why every twist and turn of the merger process is dutifully told to the media on a background basis.

DaimlerChrylser seeks "serious" buyers for Chrysler -- whatever that means originally appeared on BloggingStocks on Tue, 13 Mar 2007 08:45:00 EST. Please see our terms for use of feeds.