LONDON (Reuters) – Hedge funds have bought a strategic stake in troubled UK gaming group Gala Coral’s junior debt which will give them a place at the table in the company’s long-running restructuring, banking sources said on Friday. Apollo Management [APOLO.UL], Cerberus Capital Management [CBS.UL] and Goldman Sachs bought a stake of around 130 million […]
LONDON/FRANKFURT (Reuters) – Switzerland’s Synthes Inc (SYST.VX) and Australia’s Cochlear Ltd (COH.AX) have emerged as suitors for Siemens AG’s (SIEGn.DE) hearing aid unit ahead of binding bids due in late February, sources familiar with the matter said. The two companies are joining five private equity firms in pursuit of the unit, which sells one in […]
ActivStyle, a Riverside Co. portfolio company focused on incontinence products, has acquired Advocate Medical Services, a provider of incontinence products in Florida and Texas. No financial terms were disclosed.
NEW YORK (Reuters) – Latham International, which makes swimming pools and parts such as liners, steps and ladders, said on Friday that a bankruptcy court approved a debt restructuring plan that will put the company into the hands of its lenders. Latham said it expects to come out of bankruptcy during the next few days. […]
NEW YORK (Reuters) – One of the largest shareholders of theme park operator Cedar Fair (FUN.N) plans to vote against the $2.4 billion takeover by private equity firm Apollo Management, saying the price is too low. The deal to buy the Ohio-based amusement and water park firm was notable for being one of the few […]
Lone Star Funds has agreed to acquire hotel owner and operator Lodgian Inc. (NYSE: LGN), for approximately $270 million (including assumed debt). Under terms of the agreement, Lodgian stockholders would receive $2.50 per share.
SHANGHAI (Reuters) – Standard Chartered’s (STAN.L) private equity unit, Chinese conglomerate Fosun Group and three other bidders are vying to buy two Chinese retailers and other assets from investment firm Global Mart Ltd in a deal expected to fetch about 500 million yuan ($73 million), people familiar with the matter said. Global Mart, founded in […]
FRANKFURT (Reuters) – BMG Rights Management, the music venture owned by Bertelsmann and KKR, is looking at a number of potential investment projects backed by bank credit of up to 600 million euros ($852.2 million), a German paper reported. BMG was looking at around 38 prospects to invest in and had received loan promises from […]
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.