peHUB Second Opinion 9.10.08

The Daily Deal: TPG’s $2 billon investment in WaMu looks bad, as its stock along with most financials plunged this week. But I disagree with the article’s assertion that a dismissed CEO is a cause for alarm. That move has been known to make a company’s stock rise in some cases. Either way, the point is, TPG’s lost $1.2 billion in a matter of days.

PE Insider: Ventures West, one of the largest VC firms in Canada, is cutting its staff, including part time consultant and infectious greed blogger Paul Kedrosky. However, he didn’t blog about it.

Dealbreaker: Is asking, ‘who’s next?’ Sad that I don’t even need to specify what they’re talking about to know.

Deal Professor: Breaking down the termination fee language of the Altria deal. I know this is a strategic, but PEs take note. Actually, its probably not that relevant, no one’s striking big silly overleveraged deals they can’t finance anymore. The backing-outing is pretty much over, huh?

FT: Buyout targets are buying their own debt. You heard me, it’s not a PE backer, it’s the company itself, buying its own debt with money from the PE backer. I may have missed something, but this seems like a brand new thing to me.

Dealbook: Its not just buyout firms that are desperate to exit and using seller financing to do so, subprime lenders are taking a page from the PE book and using seller financing to unload their residential mortgage holdings.