The afternoon deal: IPO gloom


Few like to hear words like “softening” or “plateauing” but they’ve been thrown around today after Travelport axed its planned $1.8 billion IPO. A cautious eye is now being cast upon planned sales of travel firm Amadeus and retailer New Look.

Of the 62 IPOs launched globally since December 1, 2009, 32 were shelved — 15 in the U.S., 7 in Europe and 10 in Asia.

“The market remains open for good companies with good prospects that have a sensible raison d’etre for listing, but as a dumping ground for private equity? No, thank you,” says a UK fund manager.

More from the Web:

Amadeus To Review IPO Options After Travelport (Financial News)

Eyes Turn to New Look IPO After Travelport Blow (WSJ)

IPO Market Showing Signs Of Softening? (RTTNews)

A Gloomy Day for U.K. IPOs (WSJ)

Pity Those Poor IPO Bankers (WSJ)

Merlin puts £2bn flotation plans on hold (FT)

DealZone Daily

Blackstone suffered a setback when travel services provider Travelport, which it owns, pulled its $1.8 billion IPO. Travelport blamed volatile markets, but it had earlier tweaked a bonus scheme for management that investors said was overly lavish. A last-minute cut in the price range didn’t help either. Is the IPO window in Europe closing before it even opened?

Things are looking better in Asia, where AIG has made the long-awaited choice of underwriters for the listing of its Asian life insurance unit, according to our sources. The share sale could raise more than $10 billion. Elsewhere, Korea Life Insurance Co Ltd plans to raise up to $2 billion in an IPO.

For these and all other stories about deals, please click here.

And elsewhere in media (some links may require subscription rights):

Motorola Inc may spin off its TV set-top box and cellphone businesses into a publicly traded company, and sell its wireless network equipment unit, says the Wall Street Journal.