Money managers under the microscope
Activist Myerson resigns as D1 Oils chairman – Telegraph
Lehman eyes end of bankruptcy – Reuters
As if CIT didn't have enough problems digging itself out of a credit morass, now it has Carl Icahn to contend with. Troubled by what he sees as sweetheart deals between CIT and its largest creditors, at the expense of the little-guy bondholder, Icahn has offered to underwrite the $6 billion the small-business lender says it needs to survive. Icahn's offer sent CIT shares soaring by double digits ... to well above a dollar.
In a letter to CIT's board, Icahn said certain large bondholders are being offered an opportunity to purchase secured loans at prices well below their fair market value.
This week's Thomson Reuters Investment Banking Scorecard shows bankruptcy-related M&A at a five year high.
There were five bankruptcy-related M&A deals announced during the week, including the acquisition of venture-backed public company Nanogen by French investment holding company Financiere Elitech for $25.7 million.
By Lorraine Turner
Speakers at the Reuters Hedge Fund and Private Equity summit this week were asked “what keeps you awake at night” and the answers were wide-ranging, from “my 7-week old daughter” to “the next meteorite”.
Some executives are left counting sheep over the heavyweight questions that are plaguing our economies such as how low investment markets will fall or how the credit crisis can be eased as businesses remain stymied by a lack of credit.