peHub Second Opinion

*** So Carlyle wants to save the banks.  The firm even hired Wachovia’s Corporate Treasurer for the effort, according to the Wall Street Journal. They’ve made their argument for a loosening of the regulations that prohibit private equity firms from controlling the world (or something like that), but according to bloggers at The Deal, there are ways around them.  One way, of course, is to take minority stakes, like Corsair Capital and TPG Capital have done, the article suggests.

*** Thomson Reuters Q2 and first half of the year M&A numbers are live. No surprise, Goldman’s still on top, globally and domestically. Was surprised to see consumer stables as the top deal making sector, until I read the note about Phillip Morris spin-off and Anheuser takeover, which comprise 65% of the volume.

***Dow’s June performance is its worst since the Depression?

***Dealscape’s exit numbers—five exits this week, the two largest are foreign investments.

*** Earlier this week, I wrote about a potential SPAC-lash, both perceived and tangible. Today a Business Week blogger questioned the investment class’s merit. My story was debating their popularity, but I should note that personally, I don’t see a problem with SPACs. It wouldn’t be my favorite asset class (were I an actual investor), but I think they have a viable place in the spectrum. I’m curious though, other than hedge funds, do many (or any) other types of investors buy into SPACs?  Also, stay tuned for SPAC-lash Part II next week.

*** For your Friday entertainment: In researching a prior post about Avista Capital, I stumbled upon a humorous student newspaper rant against the firm’s ownership of the Star Tribune. Now, I am well aware that the buyout remains a single flub on the firm’s otherwise solid (albeit young) reputation. There may be room to criticize the investment (much of which Avista wrote down), but this guy’s argument is hard to take seriously. Certainly worth a read for anyone looking to get a chuckle at the end of their week. Highlights include calling all oil investments evil, assuming that oil investors are associated with President Bush, calling the entire state of Wyoming evil, criticizing medical research that uses mice, and finally, proposing the Star Tribune be run as a “caring and sharing, groovy, employee-owned and controlled cooperative.” In related news, I’m worried for the future of journalism!