DealZone

Deals wrap: The perils of Paulson

Hedge fund manager John Paulson became an overnight sensation in 2007, in part, by betting big and early on the collapse of the U.S. housing market. But he is now emerging as one of this year’s big losers in the $2 trillion hedge fund industry.

New China Life, the third-largest life insurer in China, has filed an application to list in a dual Hong Kong and Shanghai IPO, sources said, braving volatile markets to raise up to $4 billion.

Bank of America has held exploratory talks with the principal investment funds of Kuwait and Qatar about selling part of its $17 billion stake in China Construction Bank, three sources with direct knowledge of the talks told Reuters.

Investment banker say banks are barely making any money selling Treasury’s shares in bailed-out companies like General Motors and American International Group. As the Treasury thinks about selling the billions worth of shares that remain, Wall Street bankers are worried about profits.

Hedge funds are getting an unfamiliar taste of losing, reports the NYT.

The stock market squeeze is threatening to take the air out of AT&T’s best argument for the regulatory approval of its $39-billion acquisition of T-Mobile USA,” reports the Los Angeles Times

Deals wrap: Valuing Groupon

Groupon trimmed marketing costs in the second-quarter but its loss more than doubled as it hired new employees, the Internet daily deals company said in an update filing for its IPO.

Global brewer SABMiller is set to renew its assault on Australian bid target Foster’s later this month with a slightly higher offer likely to succeed after rival bidders fail to appear, bankers and investors told Reuters.

HSBC is selling its U.S. credit card arm to Capital One Financial Corp in a $32.7 billion deal as Europe’s top bank streamlines its mammoth operations.  Capital One said it was paying a $2.6 billion premium over the value of the loans.

Deals wrap: Capital One beefs up credit card portfolio

HSBC is nearing a deal to sell its $30 billion-plus U.S. credit card business to Capital One, sources familiar with the situation said.

Investors who bet big money on the outcome of merger and acquisition deals are scurrying as a plunging stock market jeopardizes many transactions.

Even hedge fund superstars who outsmarted the housing collapse and battered financial sector might soon be telling their investors that they suffered double-digit losses during the last few days, managers and investors forecast.

Deals wrap: Buffett makes a bid for Transatlantic Holdings

Shares in reinsurer Transatlantic Holdings rose more than 8 percent on Monday despite broad and deep market declines, after Warren Buffett’s Berkshire Hathaway made an unsolicited offer over the weekend to buy the company. The NYT looks at the chances of the deal getting done.

As broad economic worries pound the markets, a growing number of IPOs are being delayed or pulled. Tech IPOs, whose multibillion valuations recall the heady days of the dotcom boom of the late 90s and early 2000s, might fall the furthest.

Telmex, once the cornerstone of tycoon Carlos Slim’s empire, is set to delist from public markets as the world’s richest man, true to his style, shows his eye for a cheap deal, reports Cyntia Barrera Diaz and Tomas Sarmiento.

Deals wrap: Splitting Kraft

Kraft said it would split itself into two listed companies, a global snacks business and a North American grocery business, and raised its full-year outlook on better-than-expected quarterly results.

Hitachi and Mitsubishi Heavy Industries have begun talks on what would be Japan’s biggest domestic merger, three sources said, heralding a long awaited shake-up of the nation’s industrial behemoths.  Japan Real Time reports on the clumsy merger kabuki which followed a leak to local media.

When Goldman Sachs executed a $479 million block share sale in ICBC this week to help American Express  hedge its position in the Chinese lender, it underscored the sensitivities and challenges of dealmaking in China.

Deals wrap: China’s shortcut to Wall Street

A examination of a cross-section of 122 Chinese reverse mergers on U.S. markets found that between each stock’s peak trading price and July 10, 2011, those companies saw a total of $18 billion of their market capitalization vanish. Reuters is exploring the extent and impact of corporate secrecy in the United States in a series of articles.

Expect more hostile deals in resources as cashed-up miners turn desperate to snare targets, deal advisers say, following Peabody Energy and ArcelorMittal’s change of tack this week on their $5.3 billion bid for Macarthur Coal.

Private equity and venture capital-backed initial public offerings in Asia have surged 77 percent in the year to date to the highest level ever, according to the latest Thomson Reuters data, as funds look to show returns to investors ahead of new fundraisings.

Deals wrap: Express Scripts’ CEO steps into the spotlight

For a self-described nerdy accountant who shuns attention, Express Scripts chief George Paz just thrust himself into the limelight, reports Lewis Krauskopf. The company’s planned buy of Medco Health Solutions  met with swift opposition from consumer advocates and drug stores, signaling the beginning of what could be an ugly fight for antitrust approval.

Len Blavatnik’s Access Industries, Sony Music Entertainment and Vivendi SA’s Universal Music Group are among the music companies and private equity firms interested in buying EMI Group, people familiar with the situation said.

Apple is in early talks to join the bidding for Hulu, the online video site that Walt Disney Co, News Corp and its other owners have put up for sale, Bloomberg cited two unidentified sources as saying.

Deals wrap: Express Scripts to buy Medco

Express Scripts will buy rival Medco Health Solutions for $29.1 billion in cash and stock to create a powerhouse in managing prescription drug benefits in the United States, the companies said on Thursday. The WSJ live blogged the companies’ conference call on the merger.

Two Chinese Internet firms have postponed their U.S. fundraising plans due to volatile global markets and after a series of accounting scandals tarnished the reputation of overseas-listed Chinese companies.

Shares of real estate site Zillow skyrocketed in their market debut on Wednesday, the latest to ride a wave of dotcom exuberance while stoking fears of lofty Internet valuations.

Deals wrap: News Corp in play?

Reuters’ blogger Felix Salmon asks the question: “Could News Corp end up in play?

British group Aegis, one of the last independent advertising agencies, could fall prey to a larger rival if it sells its Synovate unit, with major shareholder Vincent Bollore in the role of kingmaker.

American International Group is looking to sell part of its airplane-leasing business through an initial public offering, the Wall Street Journal reported, citing people familiar with the matter.

Deals wrap: VW/Suzuki alliance shows strain

Volkswagen sought to allay Suzuki Motor’s concerns it might overstep its bounds in a multi-billion-dollar alliance and try to bring the Japanese carmaker under its control.

State-owned People’s Insurance Company of China Group, one of the country’s largest insurers, plans to raise $5 billion to $6 billion in an initial public offering in Hong Kong and Shanghai, IFR reported, citing two sources with knowledge of the plans.

“Quite a few people in biotech are still lapping up all sorts of short-sighted, destructive advice from the financial powers that be,” reports Xconomy.