DealZone

Deals wrap: Doubts grow over BSkyB bid

The British government said it would take the closure of the Rupert Murdoch tabloid, News of the World, into consideration when deciding on the mogul’s bid to buy BSkyB.

Shares in Rupert Murdoch’s bid-target BSkyB slumped as the phone hacking scandal engulfing the media mogul’s empire pushed the controversial deal into uncharted waters .

Private equity firm, Carlyle Group, is in talks to buy Energy Capital Partners, a buyout company focused on power generation, electric transmission, midstream gas and other energy markets, the New York Times said.

A Visteon Corp hedge fund shareholder that will get two board seats soon has been pushing to break up the U.S. auto parts supplier, betting the company has more value in pieces than as a whole, people close to the situation said.

A booming IPO market and the lure of high returns kept China’s private equity sector humming in the first half , stoking fear of asset bubbles amid rising concerns over the quality of listed Chinese companies.

Deals wrap: A rock & roll deal

Billie Joe Armstrong and Green Day perform "21 Guns" at the 2009 American Music Awards in Los Angeles, California November 22, 2009. REUTERS/Mario Anzuoni Warner Music Group is looking for potential buyers and Goldman Sachs is advising on the process, a source familiar with the matter said.

Rumbles of shareholder dissent show drugmaker Sanofi-Aventis is walking a tightrope as it enters the endgame in its drawn-out bid for biotech Genzyme.

A group of companies led by Brazilian beef processor JBS has arranged a financing package to bid for all or parts of Sara Lee, a source with direct knowledge of the situation told Reuters.

Deals wrap: Are hedge funds losing their sex appeal?

GM/IPOA small but growing number of hedge fund investors believe the once-free spirited portfolios, viewed as the cutting edge of finance for most of the past decade, have become too conservative and boring.

Goldman Sachs, responding to pressure from shareholders, regulators and clients, said it will disclose more information about how it makes money.

The U.S. power sector could be among the hottest industries for deals in 2011, but shareholders may not see the benefits for some time.

Deals wrap: Betting on 3PAR

Chips and cards are shown on a poker table at the Rio hotel-casino in Las Vegas,   REUTERS/Las Vegas Sun/Steve Marcus Trumping HP’s bid by 30 cents a share, Dell offered, and 3PAR accepted, $1.6 billion for the data storage company. *View article *View analysis on valuations taking a back seat to egos

Fast money is building in Potash Corp after BHP Billiton’s hostile bid, but the sheer size of the potential deal could limit the sway arbitrageurs and hedge funds have on the outcome, writes Michael Erman. *View article *Full coverage *View WSJ’s blog on how to say “Potash”

Take a look at what could be Phil Falcone’s riskiest trade ever in a special report on the hedge fund manager’s wireless broadband technology bet. *View article

In man vs machine, GLG has Manly appeal

Hedge fund firm Man Group apparently pricey deal to buy GLG Partners gives Man – the world’s biggest listed hedge fund — better access to the large and lucrative U.S. market. It also counts as a small win for the human race in its apocryphal war for investors’ funds with cheaper, faster and — many would argue — far more dangerous algorithmic trading machines known as black boxes.

The $1.6 billion cash-and-shares deal represents a heady 55 percent premium to GLG’s closing price on Friday. Clearly some investors are worried it’s a little too rich. It has so far driven the shares of Man – which had already lost about a fifth of their value since mid-April — down by a little more than 8 percent.

London-based Man has long been seen as needing more inroads into the U.S. market to take on industry leader JP Morgan. As Joel Dimmock and Laurence Fletcher report, the purchase would also dilute Man’s reliance on its flagship black box fund AHL which badly lagged rivals last year. What do you do when the black box fails? Start investing in people again.

from Funds Hub:

Icahn’t: Carl says no time for blogging, too little interest

DEAL/Could Carl's silence be golden?

Our favorite billionaire blogger and corporate raider Carl Icahn is safely avoiding writer's cramp. His Icahn Report, launched to much fanfare as a hub for corporate governance  and reform, has not been updated since April 16.

Reuters caught up with Icahn this week to discuss his intervention in CIT's attempted rescue. The legendary investor threw a bomb into the lender's efforts to strike a debt swap deal with its creditors, and to stay in business through a reorganization plan, by offering a $6 billion loan. Asked about the lack of production on his blog, Icahn explained he's been fully engaged this year:

"I've been sort of busy. And right now, with the market up, there's not as much interest in corporate governance like the were was a couple of months ago.  I've been so busy, with all these positions we've got. There's a lot going on."

from Joseph Giannone:

Alpha Male: Goldman’s Carhart is back

Undated photo from Goldman days

More than a year after one of the hedge fund industry's best known managers departed Goldman Sachs, Mark Carhart re-emerged at a hedge fund conference and told Reuters the big news: he is coming back. You heard it here first.

Mark and his longtime partner, Raymond Iwanowski, retired last March and with research head Giorgio De Santis. More than 12 years of strong performance from Goldman's quant team had made Global Alpha the bank's flagship fund and one of the industry's largest at its early 2007 peak of $12 billion.

 But a year before Wall Street imploded, computer driven funds had their own debacle. Global Alpha plunged in August 2007 as stock prices gyrated and interest rates jolted, prompting investors to pull out billions. That after the fund had lagged the average fund in 2006. And so Carhart "retired" at the age of 43.

from Summit Notebook:

Tax evaders on the run

  By Neil Chatterjee
    The U.S. has promised it will hunt down tax evaders.
    And it seems tax evaders are on the run.
    DBS bank, based in the growing offshore financial centre of
Singapore, told Reuters it had been approached by U.S. citizens
asking for its private banking services. But when told they would
have to sign U.S. tax declaration forms, the potential clients
disappeared.  
    Swiss banks also approached DBS on the hope they could
offload troublesome U.S. clients to a location that so far has
not been reached by the strong arms of Washington or Brussels.
    DBS said no thanks. In fact many private banks and boutique
advisors now seem to be avoiding U.S. clients.
    Will this spread to other nationalities, as governments
invest in tax spies and tax havens invest in white paint?
    Is this the end of offshore private private banking?

from Funds Hub:

A kick up the…

It seems the UK Treasury Select Committee's very public chastisement of the hedge fund industry in January has had some effect.

rtrxsy1At the time, MPs zeroed in on the Hedge Fund Standards Board (HFSB) in particular and the relatively small number of funds it had signed up -- 33 in December -- even though these funds accounted for half of the European industry.

"You've attracted 20 fresh members in a year. If I was a trade union officer on recruitment I'd be sacked," quipped Committee member George Mudie at the time.

from Funds Hub:

Dog Days at Cerberus

HUNGARY/Embattled Cerberus Capital Management, a private-equity firm named for the mythological three-headed dog that guards the gates of Hades, has been overwhelmed by clients seeking to withdraw money from its $2 billion hedge fund, Cerberus Partners.

Website FINAlternatives said that fund investors representing 17 percent of the assets wanted to withdraw their money in December, the most recent month for which statistics are available. Now, with Cerberus's investments in Chrysler and GMAC going bad and unemployed investors needing to tap more funds, that figure may be heading higher.

Now, according to this Bloomberg report, Cerberus sent a letter to clients warning them that it could take "years" to meet all the redemption requests, which have stacked up since the firm imposed gates in December.