BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Is Alcatel-Lucent Buyout Bait?]]>http://www.bloggingstocks.com/2011/03/03/alcatel-lucent-buyout-rumors/http://www.bloggingstocks.com/2011/03/03/alcatel-lucent-buyout-rumors/http://www.bloggingstocks.com/2011/03/03/alcatel-lucent-buyout-rumors/#commentsFiled under: ,

Alcatel-Lucent (ALU) logoFor the past decade, it's been brutal for shareholders of Alcatel-Lucent (ALU). With the contraction in the telecom market, the sales for equipment has plunged.

Yet since September, investors have been piling into Alcatel-Lucent as the shares have gone from $2.80 to $5.34. The reason? Well, the smartphone megatrend is a key factor. As carriers bolster their networks, they need to go to providers like Alcatel-Lucent.

Continue reading Is Alcatel-Lucent Buyout Bait?

Is Alcatel-Lucent Buyout Bait? originally appeared on BloggingStocks on Thu, 03 Mar 2011 12:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Alcatel-Lucent buyoutALUBuyoutsHuawei TechnologiesinthenewsThu, 03 Mar 2011 12:20:00 EST<![CDATA[Potash Mulling Break-Up]]>http://www.bloggingstocks.com/2010/10/11/potash-mulling-break-up/http://www.bloggingstocks.com/2010/10/11/potash-mulling-break-up/http://www.bloggingstocks.com/2010/10/11/potash-mulling-break-up/#commentsFiled under: , ,

Canadian fertilizer firm Potash Corp of Saskatchewan (POT) is in the middle of a rash of takeover-related news this morning. First, Britain's Sunday Telegraph reports that Potash is working on a break-up plan in hopes of stopping BHP Billiton's (BHP) takeover bid. According to the report, Potash would sell its nitrogen and phosphorous assets, pay a $70 per share dividend, and increase its debt pile.

In addition to the weekend's news, The Globe and Mail reported Friday that Chinese firm Sinochem has approached the National Mineral Development Corporation (NMDC) about a joint bid for Potash. Sinochem is making the pitch for a joint bid because it may believe that an individual bid would be shot down by Canada's political powers.

Continue reading Potash Mulling Break-Up

Potash Mulling Break-Up originally appeared on BloggingStocks on Mon, 11 Oct 2010 09:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bhpbuyoutbuyoutsfeaturedinthenewspotashSinochemtakeovertakeover bidtakeoversMon, 11 Oct 2010 09:40:00 EST<![CDATA[IBM to Acquire Netezza]]>http://www.bloggingstocks.com/2010/09/20/ibm-to-acquire-netezza/http://www.bloggingstocks.com/2010/09/20/ibm-to-acquire-netezza/http://www.bloggingstocks.com/2010/09/20/ibm-to-acquire-netezza/#commentsFiled under: ,

IBM logoMonday morning, IBM (IBM) announced that it has reached an agreement with data storage firm Netezza (NZ) to purchase the company for $27 per share.

Netezza helps companies examine data housed on corporate servers in order to help reach a decision about businesses. Netezza boasts some heavy hitters in its clientele, including Time Warner (TWX) and Virgin Media.

Continue reading IBM to Acquire Netezza

IBM to Acquire Netezza originally appeared on BloggingStocks on Mon, 20 Sep 2010 11:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>analyticsbuyoutsIBMIBM dealinthenewsNetezzaNetezza acquisitionpurchasestechnologytechnology stocksMon, 20 Sep 2010 11:00:00 EST<![CDATA[Simon Properties Still Wants a Piece of GGP]]>http://www.bloggingstocks.com/2010/04/15/simon-properties-still-wants-a-piece-of-ggp/http://www.bloggingstocks.com/2010/04/15/simon-properties-still-wants-a-piece-of-ggp/http://www.bloggingstocks.com/2010/04/15/simon-properties-still-wants-a-piece-of-ggp/#commentsFiled under: , ,

SPG makes another offer for GGPEarlier this year, General Growth Properties Inc. (GGP) rejected a $10 billion buyout offer from rival Simon Property Group (SPG), but Simon Property is not giving up completely. Wednesday Simon Property announced it would up its offer to $10 per share for GGP in exchange for 25% of the company.

The offer that was quickly rejected a couple of months ago placed a $9 value on GGP stock, and rose some anti-trust concerns.

Continue reading Simon Properties Still Wants a Piece of GGP

Simon Properties Still Wants a Piece of GGP originally appeared on BloggingStocks on Thu, 15 Apr 2010 10:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>antitrustbankruptcyBPOBrookfield Asset ManagementbuyoutsGeneral Growth PropertiesGGPinthenewsmallsreal estateshoppingSimon Property GroupSPGThu, 15 Apr 2010 10:00:00 EST<![CDATA[No Bargains in Private Equity, Unlike 2001]]>http://www.bloggingstocks.com/2010/03/01/no-bargains-in-private-equity-unlike-2001/http://www.bloggingstocks.com/2010/03/01/no-bargains-in-private-equity-unlike-2001/http://www.bloggingstocks.com/2010/03/01/no-bargains-in-private-equity-unlike-2001/#commentsFiled under: , ,

If you're looking to buy into an upswing post-recession, it doesn't look like the private equity market will be on your list. Valuations didn't fall as much as you might think, meaning that the bargains you usually find during a downturn just aren't showing up this time.

In the leveraged buyout market, prices were around 25% higher, on average, than they were in 2001, when the dotcom economy fell apart, according to Standard & Poor's Leveraged Commentary & Data. And transactions closed in the past three months have hit heir highest levels since the private equity market peaked in 2007.

Says Christopher O'Brien, president for U.S. and Europe of Investcorp Bank BSC, another "golden era" isn't coming. He tells Bloomberg News, "There's a lot of pressure to put investors' money to work now, and valuations are still high. It's a seller's market."

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.

Read | Permalink | Email this | Comments]]>BainBain CapitalBainCapitalblackstoneBlackstone GroupBlackstoneGroupbuyoutbuyout financingbuyout fundsbuyoutsbxinthenewskfnKKRleveraged buyoutleveraged buyoutsPreqinMon, 01 Mar 2010 15:10:00 EST<![CDATA[Mega-Buyout Funds Poised for Growth]]>http://www.bloggingstocks.com/2010/01/15/mega-buyout-funds-poised-for-growth/http://www.bloggingstocks.com/2010/01/15/mega-buyout-funds-poised-for-growth/http://www.bloggingstocks.com/2010/01/15/mega-buyout-funds-poised-for-growth/#commentsFiled under:

Mega-buyout funds are turning in their worst returns over one-, three- and five-year periods. Large buyout funds haven't performed well either, with small buyout funds faring best, according to alternative investment research firm Preqin. With enough time having passed from the financial market mayhem of the third quarter of 2008, it's now possible to gain some perspective and measure the results.

Mega-buyout funds' returns were negative over the past year, down 31.4%. Over the last three years, returns were still negative at 3.1%. But over the last five years, mega-buyout funds returns a solid 23.9%.

Continue reading Mega-Buyout Funds Poised for Growth

Mega-Buyout Funds Poised for Growth originally appeared on BloggingStocks on Fri, 15 Jan 2010 10:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>buyoutbuyout financingbuyout fundsBuyoutFinancingBuyoutFundsbuyoutsinthenewsPreqinFri, 15 Jan 2010 10:30:00 EST<![CDATA[Private Equity Capital Raising Thrashed in 2009]]>http://www.bloggingstocks.com/2010/01/08/private-equity-capital-raising-thrashed-in-2009/http://www.bloggingstocks.com/2010/01/08/private-equity-capital-raising-thrashed-in-2009/http://www.bloggingstocks.com/2010/01/08/private-equity-capital-raising-thrashed-in-2009/#commentsFiled under:

If your job last year was to raise private equity capital, you couldn't have been all that happy. Capital raising hit its lowest level since 2003, according to Dow Jones LP Source by way of VentureBeat, falling to $95.8 billion for 331 funds. In 2008, $300 billion had been raised across 508 funds, translating to a 68% year-over-year decline. Nobody was spared the struggle to raise funds, except secondary funds, which reported a 50% surge in fund raising.

The buyout fund, among the largest sectors in the private equity business, saw the capital raised fall 72.5%, from $195.5 billion in 2008 to a mere $53.7 billion in 2009. The largest buyout funds suffered most: only six funds with more than $6 billion under management raised an aggregate $14 billion. The year before, it took only 12 funds of this size to pull in a combined $75.2 billion in fresh capital.

Continue reading Private Equity Capital Raising Thrashed in 2009

Private Equity Capital Raising Thrashed in 2009 originally appeared on BloggingStocks on Fri, 08 Jan 2010 11:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>buyout financingbuyout fundsbuyoutsCharles River Venturesdistressed debtinthenewsmezzanine debtPrivate equityventure capitalFri, 08 Jan 2010 11:40:00 EST<![CDATA[Buyout Capacity for Private Equity Biz Still Growing]]>http://www.bloggingstocks.com/2009/12/31/buyout-capacity-for-private-equity-biz-still-growing/http://www.bloggingstocks.com/2009/12/31/buyout-capacity-for-private-equity-biz-still-growing/http://www.bloggingstocks.com/2009/12/31/buyout-capacity-for-private-equity-biz-still-growing/#commentsFiled under: , , ,

In the buyout corner of the private equity business, "dry powder" continued to grow in 2009. Industry slang for capital available for investment, this measure points to how much activity private equity funds are capable of completing.

From December 2004 through December 2008, according to data from alternative investment research firm Preqin, the amount of funds on the sidelines surged from $178 billion to $501 billion for the buyout sector, nearly tripling. This year, buyout dry powder only increased by $3 billion, to $504.28 billion. While this may feel like little more than a rounding error, it suggests stability in the sector after what has been a trying climate for financial services business of all types.

Continue reading Buyout Capacity for Private Equity Biz Still Growing

Buyout Capacity for Private Equity Biz Still Growing originally appeared on BloggingStocks on Thu, 31 Dec 2009 13:40:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>acquisitionsbuyout financingbuyout fundsbuyoutscapitalinthenewsInvestinginvestment capitalinvestmentsm and aMAndAmergersmergers and acquisitionsPreqinPrivate equityprivate equity firmprivate equity fundsprivate equity industryThu, 31 Dec 2009 13:40:00 EST<![CDATA[Private equity returns off 24% but still ahead of the broader market]]>http://www.bloggingstocks.com/2009/12/12/private-equity-returns-off-24-but-still-ahead-of-the-broader-ma/http://www.bloggingstocks.com/2009/12/12/private-equity-returns-off-24-but-still-ahead-of-the-broader-ma/http://www.bloggingstocks.com/2009/12/12/private-equity-returns-off-24-but-still-ahead-of-the-broader-ma/#commentsFiled under: , , ,

The private equity market was hit hard by the financial crisis last year, but it's already on the road to recovery, according to a new report by Preqin (pdf).

From the first quarter to the second, this year, increasing returns and valuations have given investors a reason to hope, even though the industry's average return is down 24.1% for the 12-month period ending June 30, 2009. The negative return still outpaced the S&P 500, MSCI Europe and MSCI Emerging Markets indexes, the alternative investment research firm says, which returned -26.2%, -34.1% and -27.8%, respectively -- and the 12-month average improved from -30% for the year-long period ending March 31, 2009.

Continue reading Private equity returns off 24% but still ahead of the broader market

Private equity returns off 24% but still ahead of the broader market originally appeared on BloggingStocks on Sat, 12 Dec 2009 13:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AIGAlternative investmentsamerican international groupbuyout financingbuyout fundsbuyoutsfinancial crisisFund of fundsinthenewsLehman Brothersmezzanine debtMSCI Emerging Markets IndexPreqinprivate equitys and p 500standard and poorsventure capitalventure capitalistsSat, 12 Dec 2009 13:20:00 EST<![CDATA[AB InBev hangs on to Beck's brand ]]>http://www.bloggingstocks.com/2009/11/30/ab-inbev-hangs-on-to-becks-brand/http://www.bloggingstocks.com/2009/11/30/ab-inbev-hangs-on-to-becks-brand/http://www.bloggingstocks.com/2009/11/30/ab-inbev-hangs-on-to-becks-brand/#commentsFiled under: ,

Beck's beerFirst brewed in 1873, Beck's beer is crisp, fresh, and "full of character." It's also still part of the growing AB InBev family. Anheuser-Busch InBev, which is of course the Belgian-based parent of Anheuser-Busch (BUD), has abandoned plans to sell the German beer brand to Bain Capital.

According to a German magazine, citing financial sources, this was really an eleventh-hour decision, as the contracts were already drawn up and Bain had secured $2.54 billion in financing.

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.

Read | Permalink | Email this | Comments]]>anheuser-buschanheuser-busch inbevAnheuser-buschInbevBain capitalBainCapitalbecks beerBecksBeerbudbuyoutsinbevinthenewsMon, 30 Nov 2009 09:20:00 EST<![CDATA[Private equity returns down, still plenty of cash on the sidelines ]]>http://www.bloggingstocks.com/2009/08/02/private-equity-returns-down-still-plenty-of-cash-on-the-sidelin/http://www.bloggingstocks.com/2009/08/02/private-equity-returns-down-still-plenty-of-cash-on-the-sidelin/http://www.bloggingstocks.com/2009/08/02/private-equity-returns-down-still-plenty-of-cash-on-the-sidelin/#commentsFiled under:

Private equity returns are down 27.6% year-over-year for the 12-month period ending July 30, 2009, according to a Preqin report received by BloggingStocks. The London-based research house notes, however, that the global private equity industry's dry powder (i.e., uncommitted assets) continues to exceed $1 trillion, suggesting that there is still plenty of capital waiting for a rainy day.

Returns for the past 12 months reflect all the nastiness we've seen and lived -- bailouts, company collapses, equity and credit market mayhem and unemployment rates dangerously close to double-digits. But, the money is still coming in. Preqin puts the rate by which contributions outpaced distributions at 235% for buyout funds in 2008. This category raised $148 billion while distributing only $63 billion, making last year the most imbalanced for these two measures in history.

Continue reading Private equity returns down, still plenty of cash on the sidelines

Private equity returns down, still plenty of cash on the sidelines originally appeared on BloggingStocks on Sun, 02 Aug 2009 11:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>buyoutbuyout financingbuyout fundsbuyoutscredit crisiseconomic crisisfinancial crisisfundraisingprivate equityprivate equity fundsreal estatereal estate fundventure capitalventure financialventure fundingSun, 02 Aug 2009 11:30:00 EST<![CDATA[Limited partners putting pressure on private equity funds to cut fees]]>http://www.bloggingstocks.com/2009/07/02/limited-partners-putting-pressure-on-private-equity-funds-to-cut/http://www.bloggingstocks.com/2009/07/02/limited-partners-putting-pressure-on-private-equity-funds-to-cut/http://www.bloggingstocks.com/2009/07/02/limited-partners-putting-pressure-on-private-equity-funds-to-cut/#commentsFiled under: , ,

Private equity investors are using current financial market constraints on liquidity to negotiate favorable deals, as private equity general partners have watched the values of their portfolios fall profoundly. Efforts to attract additional investment haven't been easy, as potential limited partners are reluctant to make long commitments in an uncertain marketplace. This has given limited partners a stronger position from which to negotiate both fees and terms and conditions.

Limited partners are getting a leg up on the private equity funds in which they invest, signaling a change from the historical trend in which funds could push for aggressive compensation based on the returns they provide. In a poll conducted by Preqin, 43% of investors noted a power shift from fund to limited partner, with only 2% seeing a shift toward the general partner.

Continue reading Limited partners putting pressure on private equity funds to cut fees

Limited partners putting pressure on private equity funds to cut fees originally appeared on BloggingStocks on Thu, 02 Jul 2009 17:15:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>buyout financingbuyout fundsbuyoutsinthenewspreqinprivate equity feesprivate equity fundsprivate equity industryventure capitalventure financialventure fundingThu, 02 Jul 2009 17:15:00 EST<![CDATA[General Motors to sell SAAB to Swedish company]]>http://www.bloggingstocks.com/2009/06/16/general-motors-to-sell-saab-to-swedish-company/http://www.bloggingstocks.com/2009/06/16/general-motors-to-sell-saab-to-swedish-company/http://www.bloggingstocks.com/2009/06/16/general-motors-to-sell-saab-to-swedish-company/#commentsFiled under:

This morning, General Motors (GMGMQ) -- or is it Government Motors? -- announced that it will sell its Saab unit to a consortium led by Koenigsegg Automotive AB. The purchaser is a luxury carmaker, which produces roughly 12 custom-made models each year.

In a memo of understanding, GM stated that the sale will include a $600 million funding commitment from the European Investment Bank -- which is guaranteed by the Swedish government. The sale is believed to be completed by the end of the third quarter.

Continue reading General Motors to sell SAAB to Swedish company

General Motors to sell SAAB to Swedish company originally appeared on BloggingStocks on Tue, 16 Jun 2009 10:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>automakersbuyoutscar companiesCarCompaniesinthenewsKoenigseggSaabSwedenTue, 16 Jun 2009 10:30:00 EST<![CDATA[Las Vegas icon gets new owner]]>http://www.bloggingstocks.com/2009/05/15/las-vegas-icon-gets-new-owner/http://www.bloggingstocks.com/2009/05/15/las-vegas-icon-gets-new-owner/http://www.bloggingstocks.com/2009/05/15/las-vegas-icon-gets-new-owner/#commentsFiled under: ,

The operator of the Tropicana Casino and Resort, which was featured in the films Viva Las Vegas and Diamonds Are Forever, filed for bankruptcy protection in May 2008. Canadian private equity firm Onex Corp. (TSX: OCX) has succeeded in taking over the Las Vegas icon.

Onex's main buyout fund has cobbled together a stake in the casino's senior debt that will make it the largest shareholder when a restructured Tropicana emerges from bankruptcy protection.

Though Onex will gain control of a prime location in one of the hottest spots in the city and one of the busiest pedestrian intersections in the world, it comes at a time when the fortunes of sin city are suffering due to economic conditions.

Room rates have plunged and passenger traffic into the city's airport is down 14% in the first three months of the year. But Onex founder and CEO Gerry Schwartz believes that gambling is a growth industry, and that investing in Las Vegas is a long-term value because the city has historically weathered downturns better than expected.

Continue reading Las Vegas icon gets new owner

Las Vegas icon gets new owner originally appeared on BloggingStocks on Fri, 15 May 2009 12:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>buyoutsCineplex GalaxyCosmetic EssencefeaturedgamblingGerry SchwartzOCXOnexTropicanaFri, 15 May 2009 12:00:00 EST<![CDATA[GM's UAW buyouts not that different from AIG bonuses]]>http://www.bloggingstocks.com/2009/03/26/gms-uaw-buyouts-not-that-different-from-aig-bonuses/http://www.bloggingstocks.com/2009/03/26/gms-uaw-buyouts-not-that-different-from-aig-bonuses/http://www.bloggingstocks.com/2009/03/26/gms-uaw-buyouts-not-that-different-from-aig-bonuses/#commentsFiled under: , ,

General Motors (NYSE: GM) has convinced 6,000 of its UAW employees to take buyouts of their contracts, more than doubling Barclays Capital's estimates.

The buyouts affect 10% of GM's UAW-represented workers and come at a steep cost: a $25,000 voucher to buy a new car and $20,000 in cash. Now it's not that I begrudge GM's hardworking employees who individually had nothing to do with the company's collapse, but I have to ask: Is it really fair to write them checks for $45,000, with payments made by the United States taxpayers who had nothing to do with GM's collapse.

Continue reading GM's UAW buyouts not that different from AIG bonuses

GM's UAW buyouts not that different from AIG bonuses originally appeared on BloggingStocks on Thu, 26 Mar 2009 10:10:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>AIGAmerican International GroupAmericanInternationalGroupBailoutsBuyoutsGeneral MotorsGeneralMotorsGMThu, 26 Mar 2009 10:10:00 EST<![CDATA[Alcoa: An ongoing aluminum apocalypse?]]>http://www.bloggingstocks.com/2009/02/13/alcoa-an-ongoing-aluminum-apocalypse/http://www.bloggingstocks.com/2009/02/13/alcoa-an-ongoing-aluminum-apocalypse/http://www.bloggingstocks.com/2009/02/13/alcoa-an-ongoing-aluminum-apocalypse/#commentsFiled under: , , ,

Aluminum giant Alcoa (NYSE:AA) announced on Feb. 12 that it was selling its holdings of iron ore company Rio Tinto (NYSE:RTP)to Chinalco for about $1 billion, nearly $700 million more than the current value of the holdings. And speculation has begun to surface that Chinalco will make a play for Alcoa, one of the world's largest producers of aluminum.


Continue reading Alcoa: An ongoing aluminum apocalypse?

Alcoa: An ongoing aluminum apocalypse? originally appeared on BloggingStocks on Fri, 13 Feb 2009 15:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AlcoaaluminiumbuyoutsChinaChinalcointhenewsmetalsminingFri, 13 Feb 2009 15:20:00 EST<![CDATA[20-40% of private equity firms expected to fail]]>http://www.bloggingstocks.com/2008/12/22/20-40-of-private-equity-firms-expected-to-fail/http://www.bloggingstocks.com/2008/12/22/20-40-of-private-equity-firms-expected-to-fail/http://www.bloggingstocks.com/2008/12/22/20-40-of-private-equity-firms-expected-to-fail/#commentsFiled under:

Not much more than a year ago, private equity firms were the masters of the universe. Graduates of the top business schools who once wouldn't have dreamed of anything other than investments banking were beating down their doors for a chance at seven-figure bonuses.

Now the private equity bubble -- along with the housing and credit ones -- is deflating. A new report from Heinrich Liechtenstein, a professor at Spain's IESE Business School, and Heino Meerkatt, a Munich-based senior partner and private-equity expert at Boston Consulting Group predicts that a astonishing 20-40% of private equity firms will go under. Thirty percent will survive and have a shot at prospering over the long-term. The remaining 30-50% will "hang in the balance" -- not shuttering just yet but not exactly the influence-peddlers they once were.

The role that private equity firms have played in the stock market over the past few years has been hugely important. By making bids for undervalued companies, buyout shops provided activist investors with an outlet for activating value at companies that had underperformed. Without the benefit of private equity firms, activist hedge funds will have a new challenge: Can they create alpha through more long-term oriented approaches like management changes, seats on the board of directors, and operational insight? It will be interesting to watch.

20-40% of private equity firms expected to fail originally appeared on BloggingStocks on Mon, 22 Dec 2008 12:59:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>BuyoutsinthenewsPrivate EquityPrivateEquityMon, 22 Dec 2008 12:59:00 EST<![CDATA[Huntsman deal collapses; is Penn National next?]]>http://www.bloggingstocks.com/2008/06/19/huntsman-deal-collapses-is-penn-national-next/http://www.bloggingstocks.com/2008/06/19/huntsman-deal-collapses-is-penn-national-next/http://www.bloggingstocks.com/2008/06/19/huntsman-deal-collapses-is-penn-national-next/#commentsFiled under: , , ,

The potential collapse of the $10.6 billion buyout of Huntsman Corp. (NYSE: HUN) is hardly a shock.

For one thing, rising oil prices are crushing specialty chemical makers. Another thing is that the deal was announced almost a year ago, an eternity for the closing of a merger and acquisition. The Wall Street Journal argues that private equity shop Apollo Management and its Hexcion Specialty Chemicals Inc. are making a "novel" argument to get out of the deal.

"In a complaint filed in the Delaware Court of Chancery, Hexion said Huntsman's poor financial results -- increased net debt and lower-than-expected earnings -- would render the combined company insolvent," the paper said, adding that legal experts expect Huntsman to file a countersuit. Of course, shares of Salt Lake City-based Huntsman were plunging in premarket action and will likely open much, much lower. CNBC's David Faber points out that the Huntsman deal was "held out" to be the strongest of the LBO deals. That's scary.

In a press release, Huntsman CEO Peter Huntsman said, "These actions appear to be a blatant attempt to deprive our shareholders of the benefits of the Merger Agreement that was agreed to nearly a year ago." The company added that it intends to "vigorously enforce" its rights under the merger agreement and seek to consummate the merger under the agreed upon terms.

Continue reading Huntsman deal collapses; is Penn National next?

Huntsman deal collapses; is Penn National next? originally appeared on BloggingStocks on Thu, 19 Jun 2008 10:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>AHGBlackstonebuyoutsbxfeaturedHexionHUNHuntsmaninthenewsleveraged buyoutsLeveragedBuyoutsThu, 19 Jun 2008 10:00:00 EST<![CDATA[Shareholder revolt at Yahoo?]]>http://www.bloggingstocks.com/2008/05/06/shareholder-revolt-at-yahoo/http://www.bloggingstocks.com/2008/05/06/shareholder-revolt-at-yahoo/http://www.bloggingstocks.com/2008/05/06/shareholder-revolt-at-yahoo/#commentsFiled under: ,

Even though Microsoft (NASDAQ: MSFT) revoked its buyout offer, Yahoo!'s (NASDAQ: YHOO) shares have been resilient. Actually, they are up 5% today.

Then again, the Yahoo! shareholder base is full of arbs, hedge funds and activists who want to force the company to get some type of transaction done.

Funny enough, the CEO of Yahoo!, Jerry Yang, is indicating that he's still interested in a hookup. But, of course, Microsoft seems to be pretty cool on things. After all, the firm was bidding against itself.

However, the fact remains that Yahoo!'s shareholders are perturbed. Take Gordon Crawford, who manages Capital Research Global Investors and controls roughly 16% of Yahoo!'s shares. He said he's "extremely angry at Jerry Yang" and wonders what the board was thinking. Basically, Crawford would have been happy with $34 per share.

Continue reading Shareholder revolt at Yahoo?

Shareholder revolt at Yahoo? originally appeared on BloggingStocks on Tue, 06 May 2008 16:32:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>BuyoutsinthenewsTue, 06 May 2008 16:32:00 EST<![CDATA[Newspaper wrap-up: More layoffs coming to Citigroup?]]>http://www.bloggingstocks.com/2008/03/20/newspaper-wrap-up-more-layoffs-coming-to-citigroup/http://www.bloggingstocks.com/2008/03/20/newspaper-wrap-up-more-layoffs-coming-to-citigroup/http://www.bloggingstocks.com/2008/03/20/newspaper-wrap-up-more-layoffs-coming-to-citigroup/#commentsFiled under: , , , , ,

MAJOR PAPERS:
  • Following the collapse of The Bear Stearns Companies Inc (NYSE: BSC), the industry is rampant with rumors wondering about the financial well being of scores of other institutions, according to a Wall Street Journal report called "The Credit Crisis Hits Wall Street". True or not, its giving fits to the companies, regulators, and investors.
  • Skyrocketing fuel prices and a weakened economy are taking their toll on the airline industry, reported the Wall Street Journal. Additionally, the proposed Delta Air Lines Inc (NYSE: DAL) merger with Northwest Airlines Corporation (NYSE: NWA) has lost its momentum as airline pilots cannot agree on a structured seniority system.
OTHER PAPERS:
  • According to people close to the situation, the New York Times reported that before the end of the month, Citigroup Incorporated (NYSE: C) is planning to lay off another 2,000 investment bankers and traders.
  • The Detroit News reported that Ford Motor Company (NYSE: F) appears to have fallen short of its goals in the latest, and possibly last, round of company-wide buyouts for hourly workers.

Newspaper wrap-up: More layoffs coming to Citigroup? originally appeared on BloggingStocks on Thu, 20 Mar 2008 07:55:00 EST. Please see our terms for use of feeds.

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