American International Group (AIG) has gone back to the feds. The insurer pulled another $2.2 billion from its Treasury Department facility to support the property-casualty business units that will comprise the restructured company. AIG used the cash from Treasury to redeem some securities held by its insurance subsidiaries to increase liquidity and address rating agency considerations.

According to David Havens, managing director of credit trading at Nomura Securities (NMR), "AIG still needs to be cognizant of where the rating agencies stand on their solvency." He adds, in Bloomberg News, that the funds may have been sought after the company got "feedback from the rating agencies that the regulatory capital within the operating companies doesn't muster up."

Continue reading AIG to Hit Feds for Another $2 Billion

AIG to Hit Feds for Another $2 Billion originally appeared on BloggingStocks on Wed, 17 Mar 2010 10:20:00 EST. Please see our terms for use of feeds.

The financial crisis, employment market and social media explosion have converged, providing a new level of clarity into what is happening in the world around us. Where was ground zero for this financial catastrophe? Well, according to the LinkedIn blog, five companies have shown the most action: Barclays (BCS), Credit Suisse (CS), Citigroup (C), Bank of America (BAC) and JPMorgan Chase (JPM). Interestingly, Goldman Sachs (GS), among the biggest winners now that we're pulling out from the recession, didn't see as much play.

Continue reading Financial Crisis Didn't Push Bankers from Industry, LinkedIn Reports

Financial Crisis Didn't Push Bankers from Industry, LinkedIn Reports originally appeared on BloggingStocks on Sun, 21 Feb 2010 15:10:00 EST. Please see our terms for use of feeds.

What has Blackstone (NYSE: BX) been doing with all those theme parks it's been buying? Well, the answer is becoming a bit clearer now. The private equity firm is getting ready to take theme park operator Merlin Entertainments public early next year.

Several investment banks have already been called to advise on the transaction, including Citigroup (NYSE: C), Goldman Sachs (NYSE: GS), Deutsche Bank (NYSE: DB), UBS (NYSE: UBS), and Nomura (NYSE: NMR). If all goes as planned, the deal could be good for $3.33 billion.

Continue reading Will Blackstone make magic with Merlin?

Will Blackstone make magic with Merlin? originally appeared on BloggingStocks on Sun, 25 Oct 2009 14:40:00 EST. Please see our terms for use of feeds.

It now appears almost certain that the federal government will takeover Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE). The amount of money the Treasury will have to put into the companies to improve their balance sheets will probably wipe out common shareholders.

The news may foreshadow what will happen to Lehman Brothers (NYSE: LEH) if its gets into more trouble The value of its commercial loan portfolio and mortgage-back securities is bound to fall as the real estate market gets worse.

Several outside investors, including Japanese broker Nomura and the Korea Development Bank, may pump money into Lehman. It is not good news that no one has pulled the trigger on putting up cash. All of the interested parties are probably waiting for Lehman's next quarterly earnings report. If the numbers are bad the value of Lehman's stock, which has gone from a 52-week high almost $68 to $16, could fall further.

The lesson from Freddie and Fannie (and, to some extent, Bear Stearns) is that the Fed and Treasury do not care about common shareholders. They get to go down with the ship.

Douglas A. McIntyre is an editor at 247wallst.com.

Fannie and Freddie rescue may mean bad news for Lehman originally appeared on BloggingStocks on Sun, 07 Sep 2008 15:10:00 EST. Please see our terms for use of feeds.

Motorola to exit handset business? originally appeared on BloggingStocks on Tue, 29 Jan 2008 12:36:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• In an interview with the Financial Times (subscription required), Carl Icahn said of Motorola (NYSE: MOT): "There is value there, and if that value doesn't manifest itself, I as an activist, would think very seriously about coming back."

• Universal Music is in talks with Sony Corporation's (NYSE: SNE) Sony BMG and Warner Music Group (NYSE: WMG) over launching a music subscription service to be called Total Music, which would be free on certain devices, reported the Telegraph.
• While Emerging Memory Technologies CEO Sreedhar Natarajan would not confirm the deal, stating "I'm under a non-disclosure agreement," it is clear that EMT has been acquired by Taiwan Semiconductor Manufacturing Company (NYSE: TSM), the Ottawa Citizen reported.
• Lehman Brothers analyst Douglas Anmuth believes Google (NASDAQ: GOOG) will launch a mobile phone similar to that of Apple's (NASDAQ: AAPL) iPhone in February, reported the Independent.
• The Associated Press reported that Nomura Holdings (NYSE: NMR) announced that it will close its mortgage-backed securities business in the U.S., and expects a group pretax loss of between $240M and $510M for the quarter ended in September.

• According to Unstrung.com's sources in the finance community, Cisco Systems (NASDAQ: CSCO) is expected to enter the WiMax arena before the end of the month, and Navini Networks is Cisco's preferred target.

Newspaper wrap-up: Icahn looking at Motorola originally appeared on BloggingStocks on Mon, 15 Oct 2007 09:15:00 EST. Please see our terms for use of feeds.

Over the past few years, the equities markets in Japan have staged a nice comeback. As a result, there has been a surge in mergers & acquisitions activity.

Good news for Japanese investment banks? Not necessarily. In fact, the beneficiaries are mostly US investment banks. This is according to an article at Bloomberg.com.

In 2006, the top investment bank in Japan was actually Goldman Sachs. Then again, this firm has taken some big risks in this market. For example, in 2003, the firm purchased 91 golf courses in Japan, when the market was at the bottom.

Interestingly enough, Nomura Holdings was ranked #6 overall. Not long ago, this firm had about half the market share. Now it has a lowly 15%.

Why the fall-off? It might be that the Japanese investment banks lack global platforms. Yet Japanese corporate clients realize that in order to grow they need to look for opportunities in other countries.

True, Nomura is not standing still. As I've written at Bloggingstocks.com, the firm has made some interesting deals lately to boost its business.

Maybe the next step is to buy an investment bank.

Tom Taulli is the author of various books, including the Complete M&A Handbook and operates DealProfiles.com.

US investment banks invade Japan originally appeared on BloggingStocks on Thu, 28 Dec 2006 13:11:00 EST. Please see our terms for use of feeds.

The biggest securities firm in Japan, Nomura Holdings, NYSE:NMR) is getting bigger. The company recently snagged Instinet, which is an electronic exchange (yes, a pretty hot space).

Now, the company is going to shell out $888 million for a 15% stake in Fortress Investment Group, which is a mega player in hedge funds and private equity. Basically, it looks like Nomura is trying to build a powerhouse like Goldman Sachs.

In fact, Fortress is in the process of going public. Thus, the Nomura's investment provides a valuation benchmark on the upcoming deal (about $5.9 billion).

The deal is also strategic, allowing Fortress to move into the lucrative Asian markets. In other words, it could be a nice boost for the IPO.

Tom Taulli is the author of various books, including the Complete M&A Handbook and operates DealProfiles.com.

Nomura gets hedge fund fever originally appeared on BloggingStocks on Tue, 19 Dec 2006 11:21:00 EST. Please see our terms for use of feeds.

The biggest securities firm in Japan, Nomura Holdings, agreed to buy Instinet, which is an electronic trading firm.

It was last December that Silver Lake Partners, a private equity firm, purchased Instinet for about $208 million.

So, what did Nomura pay for Instinet? It hasn't been disclosed, but the rumor is that it was in excess of $1 billion.

If so, this would certainly qualify has a home-run deal.

But this does raise a big issue: Isn't a private equity firm supposed to fix-up and improve a company before it is sold off? Can this realistically be done in less than a year?

Well, I think this deal is a classic case of "good timing." With the onslaught of technology, stock exchanges are undergoing major changes. As a result, there has been an aggressive move to electronic approaches. It also helps that Instinet has a large list of hedge fund clients.

If a private equity firm can get a big return early, it's their duty to take it.

Tom Taulli is the author of various books, including the Complete M&A Handbook and operates InvestorOffering.com.

Private equity big-time payday on Instinet originally appeared on BloggingStocks on Fri, 03 Nov 2006 10:45:00 EST. Please see our terms for use of feeds.