WILMINGTON, Del. (Reuters) – A shareholder sued the management of Cedar Fair LP (FUN.N), a theme park operator, for agreeing to sell the company too cheaply to Apollo Management and asked a judge to block the deal, according to court documents. The private equity firm agreed last month to buy Cedar Fair for a total […]
Earlier today, President Obama outlined some proposals designed to limit risk-taking on Wall Street. For our purposes, here is the operative section:
"We should no longer allow banks to stray too far from their central mission of serving their customers. In recent years, too many financial firms have put taxpayer money at risk by operating hedge funds and private equity funds and making riskier investments to reap a quick reward. And these firms have taken these risks while benefiting from special financial privileges that are reserved only for banks. Our government provides deposit insurance and other safeguards and guarantees to firms that operate things. We do so because a stable and reliable banking system promotes sustained growth, and because we learned how dangerous the failure of that system can be during the Great Depression. But these privileges were not created to bestow banks operating hedge funds or private equity funds with an unfair advantage. When banks benefit from the safety net that taxpayers provide, which includes lower cost capital, it is not appropriate for them to turn around and use that cheap money to trade for profit. And that is especially true when this kind of trading often puts banks in direct conflict with their customers' interests."
It's good political populism, and may even make for good policy (so argues Felix). The fact that Obama made the statement in the midst of Goldman's earnings call is just theatrical one-upsmanship. What it means for private equity, however, is extremely unclear.
FRANKFURT/LONDON (Reuters) – Top German cable provider Kabel Deutschland plans to raise at least 1 billion euros ($1.42 billion) in an initial public offering (IPO) as early as the second quarter, people familiar with the matter said. Kabel Deutschland’s owners are picking bookrunners for a potential listing as they prefer the public market to a […]
Even though some are calling Kraft's deal for Cadbury a sweet one, to private equity firms, it tastes like sour grapes. In light of Kraft's generous use of leverage, the Private Equity Council, a PE advocacy group, released an analysis that can best be described as a vindictive "toldja so." And they're right, and they did tell us so, but still. The PEC's research that shows Kraft, a strategic buyer, will use more leverage (gasp!) on its deal for Cadbury than private equity did in the boom-era. For shame! According to the PEC, Kraft's leverage ratio is 24% higher than the average debt-to-cash flow ratio for large buyout deals between 2005 and 2008. The Counsel said:
Riverstone Holdings has completed its $207 million acquisition of Seajacks International, owner and operator of two UK-based vessels that can install offshore wind turbines.
Ares Management and the Ontario Teachers’ Pension Plan have completed their acquisition of Simmons Bedding Co., via a pre-packaged restructuring plan. The mattress maker had been acquired for $1.1 billion by THL Partners in 2003, but filed for Chapter 11 bankruptcy protection last fall. Simmons now has around $450 million in outstanding debt, compared to around $1 billion last September.
SEOUL (Reuters) – Macquarie (MQG.AX) and South Korea’s Hanwha Securities (003530.KS) are among the shortlisted bidders for Prudential Financial’s (PRU.N) two South Korean units, expected to fetch less than $500 million, two sources told Reuters on Thursday. Hanwha confirmed that it was one of the shortlisted bidders. Private equity funds CVC and MBK Partners and […]
NEW YORK (Reuters) – China-based solar company JinkoSolar Holding Co Ltd on Wednesday filed for an initial public offering of up to $100 million. The company, which makes silicon wafers, solar cells and solar modules, said it would use proceeds from the IPO to expand its manufacturing, for research and development, and for working capital, […]
Oracle and Obama: Massachusetts voters may have had it with some of the Obama administration's policies. But it appears that Obama still has a fan in Omaha. (Deal Journal) Should Private Equity Be Investing in Residential Real Estate? Time thinks not. (Time) Looking to "Capitalise": Blackstone has applied for a British banking license. (Reuters) Fireworks: Cisco, Twitter See More Technology Takeovers for 2010. (Bloomberg) Amazing: Gary Fencik, once a hard-hitting safety with the Chicago Bears and now a partner with Adams Street Partners, turned down a chance to join some of his 1985 Bears' teammates in reprising their well-known "Super Bowl Shuffle" rap song and video for a Boost Mobile ad. (PE Beat) What Wall Street Really Fears: That Lloyd Blankfein, "the least-appealing CEO on Wall Street is leading the effort to change the public perception that the system is rigged against the little guy suffering through 10 percent unemployment while the big banks party on." (Daily Beast)
NEW YORK (Reuters) – Metro-Goldwyn-Mayer, which has received several first-round bids in an auction to sell itself, is considering a prepackaged bankruptcy along with a sale, sources familiar with the matter said. The studio, which has $3.7 billion in debt, could reduce liabilities and clean up its balance sheet in a prepackaged bankruptcy, leaving its […]