By George Hay and Peter Thal Larsen
The authors are Reuters Breakingviews columnists. The opinions expressesed are their own.
Monte dei Paschi is in a real fix. To survive the euro zone meltdown, lenders need two things: sufficient capital, and a solid base of solvent shareholders that can put up more cash if needed. Italy’s third-largest bank has neither.
WILMINGTON, Delaware (Reuters) – A judge approved an $89.4 million settlement for shareholders of Del Monte, who claimed they were shortchanged in the food company’s $4 billion sale to private equity investors led by KKR and Co (KKR.N: Quote, Profile, Research, Stock Buzz).
Delaware Chancery Court judge Travis Laster on Thursday overruled an objection by a Cleveland pipe fitters union pension fund, which had sought to opt out of the settlement to pursue a similar lawsuit in a California federal court.
Nov 28 (Reuters) – The U.S. Department of Justice has
opened a probe into the $4 billion takeover of Del Monte Corp
by private equity investors led by KKR and Co ,
according to court papers regarding an investor settlement over
The department’s antitrust division “has been investigating
the facts and circumstances surrounding the sale of Del Monte,”
Stuart Grant, a lawyer for Del Monte shareholders, wrote in a
Nov. 23 court filing. He said he has provided documents to the
division and is cooperating with the investigation.
By George Hay
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
The European Central Bank is shaping up to slaughter some sacred cows. The rate-setter, which has already lent more than 500 billion euros to liquidity-starved banks for up to a year, is considering offering longer-term loans. Yet some observers, most notably UniCredit chief executive Federico Ghizzoni, also want it to loosen collateral rules.
By George Hay
LONDON, Nov 25 (Reuters Breakingviews) – The central bank is
considering offering longer-term loans to the euro zone’s
stricken lenders. Bankers also want it to broaden the pool of
collateral it will lend against. Though the ECB will not want to
get swamped, easing some rules might help prevent small banks
SIGN UP FOR BREAKINGVIEWS EMAIL ALERTS:
— The European Central Bank is considering extending its
long-term refinancing operations to last two or three years,
people familiar with the matter told Reuters on Nov 24.
By George Hay
The author is a Reuters Breakingviews columnist. The opinions expressed are his own. European banks are about to indulge in some sleight of hand. Though they have been told by regulators to raise 106 billion euros of capital by next summer, that doesn’t mean they will issue that amount of new equity. Lenders are also planning to fiddle with the way they calculate risk-weighted assets (RWAs). They may end up shooting themselves in the foot.
WILMINGTON, Delaware (Reuters) – Solyndra LLC, the bankrupt solar panel maker that owes $500 million to the U.S. government, plans to auction off its machinery in January if it does not get bids for the entire business by an extended deadline.
Solyndra said last week that an initial deadline passed without any satisfactory bids to buy the entire company and restart production, damping hopes that some of its 1,000 idled workers might be rehired.
Nov 18 (Reuters) – The Dallas Stars hockey team won court
approval of its bankruptcy reorganization, clearing the way for
the team to be sold for $265 million to Vancouver businessman
U.S. Bankruptcy Judge Peter Walsh approved the plan at a
hearing on Friday, court records show.
By Tom Hals
(Reuters) – Fox Sports wants the Los Angeles Dodgers thrown out of bankruptcy, saying the baseball team is using Chapter 11 to enrich club owner Frank McCourt.
Earlier this month McCourt ended a bitter feud with Major League Baseball over control of the team. As part of that deal, he agreed to sell the team and the league agreed to drop its opposition to the team’s plan to sell future media rights, a source told Reuters.
By Tom Hals
(Reuters) – A U.S. investor sued Japan’s Olympus Corp, accusing the scandal-hit company of making false statements about its finances and intentionally hiding losses from investors.
Lloyd Graham, who owns 55 American Depository Receipts of Olympus (OCPNY.PK: Quote, Profile, Research, Stock Buzz), filed a securities lawsuit against the company on Monday, seeking to recover investment losses. The lawsuit seeks class-action status to represent all investors who bought Olympus ADRs in the five years leading up to November 7.