Jeffrey's Feed
Oct 26, 2015
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Keep one eye on Sam Zell’s “For Sale” sign

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The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Billionaire Sam Zell is one of those dealmakers it pays to watch. The U.S. real estate mogul’s Equity Residential is offloading a collection of some 23,000 apartment units for $5.4 billion. The buyer, Barry Sternlicht, has been known to get his timing right, too. One big difference is Zell’s two extra decades of investing experience.

Oct 15, 2015
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Clogged IPO exit ramp boxes in buyout barons

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The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Buyout stragglers are finding their primary exit to cashing out impeded. Blackstone, Carlyle, KKR and their peers have had a good run returning heavily indebted portfolio companies to public stock markets. But the lingering crop of initial public offerings is now struggling to squeeze out. It bodes poorly for the private equity industry when selling is as tough as buying.

Oct 15, 2015
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Clogged IPO exit ramp boxes in buyout barons

Photo

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Buyout stragglers are finding their primary exit to cashing out impeded. Blackstone, Carlyle, KKR and their peers have had a good run returning heavily indebted portfolio companies to public stock markets. But the lingering crop of initial public offerings is now struggling to squeeze out. It bodes poorly for the private equity industry when selling is as tough as buying.

Oct 14, 2015
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Chinese fund invests enough to make angels weep

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The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

The latest technology startup fund could make angels weep. Beijing-based private equity firm CSC Group has put up $400 million to back early-stage ventures via AngelList, a website that matches new companies with the necessary cash to get them going. Allowing inexpert investors to piggyback on the picks of experienced backers of startups is a clever model. The sum involved, however, is almost certainly too much of a good thing.

Sep 30, 2015
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M&A running out of road on Easy Street

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The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Wall Street’s merger business is running out of road on Easy Street. Since July, only about four out of 10 U.S. corporate buyers have experienced a rise in their stock prices after announcing an acquisition of at least $1 billion, according to Thomson Reuters data. That’s the first dip below half in four years. The end of an M&A boom may be nigh.

Sep 29, 2015
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Business Insider picks deep German pockets

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The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Business Insider boss Henry Blodget is living up to his company’s name. He has struck a deal to sell the business and tech news website to German publisher Axel Springer at a $442 million valuation. That implies an implausibly long run of improbably fast growth. The lofty expectations evoke Dresdner Bank’s acquisition of Wasserstein Perella.

Sep 2, 2015
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Buyout barons like the sound of a blank check

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The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Buyout barons are jumping on the blank-check bandwagon. David Bonderman’s TPG and Alec Gores’ eponymous firm are the latest shops to pursue initial public offerings for so-called special-purpose acquisition companies, or SPACs. Not all dealmaking nous is necessarily the same, however.

Sep 2, 2015
via Breakingviews

Buyout barons like the sound of a blank check

Photo

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Buyout barons are jumping on the blank-check bandwagon. David Bonderman’s TPG and Alec Gores’ eponymous firm are the latest shops to pursue initial public offerings for so-called special-purpose acquisition companies, or SPACs. Not all dealmaking nous is necessarily the same, however.

Aug 24, 2015
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Southern’s $12 bln deal could find true north

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The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Southern’s acquisition of AGL Resources could yet find its true north. The power producer is buying its crosstown Atlanta rival for $12 billion, including debt. Although the premium looks rich for the utility sector, there is at least a chance the price can be justified.

Aug 11, 2015
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Symantec’s Veritas sale tells truth about tech M&A

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The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Symantec is revealing the truth about tech M&A. Offloading its data storage and recovery business Veritas for $8 billion to buyout firm Carlyle and Singapore’s GIC ends a decade-long disaster of a deal. Like Hewlett-Packard, Microsoft and others, Symantec discovered it can be harder to buy than build. The resulting carve-ups and writedowns, though, have a tendency to perpetuate the problem.