peHUB Second Opinion 11.14

Picture it: On NPR, via Andy Kessler, “…have they given up hope, have they just said, ‘you know what, sell everything,’ and just en mass, people are puking out stocks…”

Well They Aren’t Busy With Deals: Dealzone notices that buyout pros have been busy on the conference circuit as of late. “You would think maybe that some of the private equity big shots that stole the headlines during the credit bubble would recede a bit from the limelight.”

Private Goldman Sachs: If Goldman Sachs goes private, and Blackstone Group stays public, I think it’ll be like The Parent Trap, where identical twin sisters switch places and go home to the wrong parent, only to miss the way things were and long to return to their real home. Especially after a law professor suggested Goldman’s structure, “could be the beefed up private equity approach, plus SOX.”

Bargain Prices: For shares of Berkshire Hathaway. Unfortunately for me, a lowly blogger’s annual salary won’t cover the cost of a single share, even at depressed values.

Antitrust: InBev shall divest Labatt’s as part of its acquisition of Anheuser. The Canadian business formed a JV with the Cuban government 11 years ago, according to Dealbook. Perhaps shedding the ties to communism might help A-B with the super pro-America ad campaign that’s been plastered all over subway cars since the deal’s announcement.

This Guy Knows His Stuff: When Wilber Ross speaks, most people in the distressed world listen. Which is why its distressing for many to hear him say that bankruptcy is not the best option for GM. It’s true the company won’t find DIP financing, but why can’t the government provide that, instead of a bailout crutch that may or may not stop the company from bankruptcy anyways? Either way I agree with him that liquidation of GM is very, very bad news.

Meanwhile: Ross is busy doing deals. A portfolio company of his bought a bond insurance unit with almost $2 billion in quarterly losses.

The Good Old Days: Leverage isn’t what it used to be. Three is the new six, apparently.

Morgan Stanley: A paper that says, the Obama administration won’t likely be as liberal as one might think. “The doubters may be surprised.”