The final version of the FDIC's proposed rules for private equity investments in banks won't take effect for at least a month, but that won't stop news organizations from digging around. Today the NY Post contradicted our report from yesterday which quoted Wilbur Ross calling the FDIC roundtable discussion "highly productive." Ross seemed hopeful that the FDIC would grant a few concessions on the agency's strict proposed rules. The Post took a different bent, painting FDIC Chairman Sheila Bair as "unmoved" by the buyout firms' pleas. Citing an anonymous source, the story said "regulator has made her mind up when it comes to PE firms buying banks: Thanks, but no thanks."
While the FDIC is well known for providing deposit insurance, another of its principal roles is that of receiver for failed depository institutions (i.e., banks and thrifts). In connection with this activity, the FDIC engages in the post-failure sale of the assets of these institutions in order to recover the maximum amount possible to settle the claims of the institution's creditors, including the FDIC. The FDIC's Division of Resolutions and Receiverships, located in the FDIC's Washington, D.C. and Dallas offices, coordinates the sale of these assets, which, while numerous and varied (including furniture, art and other miscellaneous items), are comprised primarily of performing and non-performing loans held by failed institutions. Although the FDIC has great latitude in how it structures its loan sales programs, it must comply with its statutory obligation to dispose of a failed institution's assets in a way that is least costly to the FDIC's Deposit Insurance Fund. While these efforts have typically involved the direct sales
NEW YORK (Reuters) – Medical supplies provider CCS Medical Inc. filed for Chapter 11 bankruptcy protection on Wednesday and said it had reached an agreement with some lenders to cut its debt and improve its capital structure. The company, which helps distribute diabetes test strips, insulin pumps, urological supplies and prescription drugs, said in a […]
Symphony Technology Group last night announced an agreement to acquire MSC.Software Corp., a publicly-traded provider of simulation software for designing and testing manufactured products. The leveraged buyout is valued at approximately $360 million ($7.63 per share), with hedge fund Elliott Management also participating on the equity. So we’ve got 5 Questions for STG managing director Bill Chisholm: 1. How did this deal come about? We’re a mid-market software and tech services investor, so we try to keep pretty close tabs on companies that could be of interest to us, and keep in touch with their executives. It’s not like there are hundreds of attractive ones out there. MSC is one we’ve tracked for a long time. This time around we were a bit more aggressive and direct, and the company was a bit more receptive than it’s been in the past.
Pfingsten Partners has acquired Hy-Bon Engineering Co., a Midland, Texas-based maker of vapor recovery units. No financial terms were disclosed, except that company management will retain an equity position.
LONDON (Reuters) – Private equity firms pursuing Springer Science and Business Media have been asked to resubmit bids after second-round offers fell short of expectations, people familiar with the matter said. TPG, EQT and a consortium of Carlyle Group and Providence submitted bids for up to 49 percent of Springer, but all fell “significantly short” […]
CAIRO (Reuters) – Private equity firm Actis has agreed to pay $244 million to acquire a 9.3 percent stake in Commercial International Bank (COMI.CA) (COMIq.L), Egypt’s largest lender by market value, Actis said on Wednesday. Actis, which invests in emerging markets, said it would acquire 27.3 million CIB global depositary receipts at a price of […]
Symphony Technology Group and Elliott Management have agreed to acquire MSC.Software Corp. (Nasdaq: MSCS), a provider of simulation solutions for designing and testing manufactured products. The deal is valued at approximately $360 million, with MSC stockholders to receive $$7.63 per share (13% premium to today's closing price). Wells Fargo Foothill and CapitalSource have committed to provide senior debt financing.
NEW YORK (Reuters) - Media group Bertelsmann [BERT.UL] and private equity firm Kohlberg Kravis Roberts & Co are to form a music rights management joint venture, KKR said on Tuesday. The deal, expected to be announced Wednesday, will create a venture 51 percent owned by KKR and 49 percent owned by Bertelsmann, KKR said. Such a deal could be a more efficient way of managing rights under one roof, and would mark a more aggressive push into the music business for the privately held German media giant, which has largely exited the industry.
DETROIT/NEW YORK (Reuters) – Federal-Mogul Corp (FDML.O) is readying a renewed bid for the assets of Delphi Corp (DPHIQ.PK) after breaking off talks with the bankrupt auto parts maker in late May, three people with knowledge of the situation said on Tuesday. Federal-Mogul, controlled by billionaire investor Carl Icahn, had discussions about buying all or […]