Wall Street banks are seeing a glut of resumes from Lehman Brothers, as staff there are contacting colleagues at other firms directly to find new jobs after their investment bank went bankrupt. Some banks, including JPMorgan Chase and Credit Suisse, have told headhunting firms looking to find jobs for former Lehman Brothers employees that they will not pay the firms for putting them in touch with these job candidates, because they are already inundated with direct applications.
John A. Challenger is chief executive officer of global outplacement and business coaching consultancy Challenger, Gray & Christmas, Inc. The opinions expressed here are his own.
Bailouts and shotgun weddings might be the order of the day for financial institutions, but among tech companies, hostile deals continue to win the popularity stakes. The fact that this year’s biggest hostile tech deals have failed to produce mergers — think Microsoft-Yahoo, Electronic Arts-Take Two, Cadence-Mentor — has done little to curb appetites for unsolicitied deals, which have hit record levels in the U.S.
A good meltdown never fails to bring out the bargain hunters. With congress celebrating the Jewish New Year, no deal on a bailout package can emerge before tomorrow at the earliest. And yesterday’s setback has sparked plenty of talk that agreement will be harder to achieve than thought over the weekend. Now uncertainty rules the markets and the rolloercoaster is gaining speed. What’s a bargain hunter to do?
In London, shares of HBOS tanked more than 20 percent as talk swirled that Lloyds TSB would seek a lower price for its accepted takeover of the struggling British lender. Lloyds’ shares rose more than 3 percent. The longer it takes, and the more uncertainty that plagues the market, the better the case becomes for buyers of distressed rivals to renegotiate their deals. Buyers looking for better prices can easily point to changing circumstances to make their case.
Overnight, a Delaware chancery court judge ruled against private equity firm Apollo Management, which had been trying to walk away from a deal to buy Huntsman because, claiming Material Adverse Conditions had made its offer for the specialty chemicals group untenable. Maybe they should have, as the judge suggested, appeared more willing to deal.