Unstructured Finance

Envy, desire and basis points

September 21, 2011

I would like to tell you a story. It’s one about the tempestuous relationship between fund managers and their investors, a tale of envy, desire and basis point negotiations. You may have spotted by now that this is not the plot for this season’s latest blockbuster.

Deals wrap: Cutting assets to pay for slick

July 12, 2010

BP CEO Tony Hayward testifies about the BP oil spill in the Gulf of Mexico at the House Energy and Commerce Committee on Capitol Hill in Washington, June 17, 2010.  REUTERS/Larry DowningBP is looking to sell assets to help pay for the oil spill in the Gulf of Mexico. A source says BP is in talks with U.S. oil and gas company Apache Corp. The Sunday Times reported that the talks involved $12 billion in assets. View article

The Afternoon Deal: Reuters Summit exclusives

March 2, 2010

USA/At the Private Equity and Hedge Funds Summit, Primus co-CEO Robert Morse tells Reuters the opportunities in real estate in the U.S. are extraordinary. The $1.2 billion financial investment firm is now setting its sights on property owned by distressed sellers in the United States.

Is Cadbury too rich for Hershey?

January 14, 2010

While Cadbury shares saw some life on hopes for a rival bid from Hershey — boosted by reporting from the FT that a rival offer was further along than much of the market had assumed — naysaying analysts and pundits have been quick to point out that the financials of a Hershey bid are hard to stomach.

Is Buffett being Krafty?

January 5, 2010

Warren Buffett may have thrown a monkey wrench into Kraft’s bid for Cadbury — not with his ‘no’ vote on Kraft’s plan to issue 370 million shares to help buy the British chocolate company, but with his scathing comments on Kraft’s board for a deal he has long regarded with skepticism. Buffett previously said Kraft’s stock was an “expensive currency” for funding the deal, a position he repeated on Tuesday.

GMAC plays its too-big-to-fail card… again

December 31, 2009

The Treasury, as major shareholder of such credit boom casualties as Citigroup and General Motors, showed with its $3.8 billion infusion into GMAC that it can still be counted on to safeguard the financial system from systemic collapse. The auto-loan company, which had dutifully spread its wings into mortgages in the housing boom, wound up becoming a bank to qualify for TARP bailout funds a year ago – the day after Christmas 2008, to be precise. How could Treasury say no?

Warren Wonka the Candyman?

September 18, 2009

Warren Buffett knows sweets. His Berkshire Hathaway is the largest shareholder in Kraft Foods, which made an unsolicited — and rebuffed — $16 billion bid for Cadbury. The Wall Street Journal reported that the trust that holds voting control of Hershey has hired Buffett’s favorite banker, Byron Trott, as it also weighs whether to pursue the British chocolate maker.

John Paulson gains Buffett’s Midas touch

June 10, 2009

FINANCIAL/Hedge fund manager John Paulson, who made a fortune currectly betting on the U.S. housing market collapse in 2007 and then the broader financial crisis last year, is starting to wield a Midas touch long associated with Warren Buffett.