Unstructured Finance

Deals wrap: Takeda offers $12 billion for rival Nycomed

Takeda Pharmaceutical is in talks to buy privately-held Swiss rival Nycomed for more than $12 billion, said sources with direct knowledge of the matter. Japan’s largest drugmaker is seeking to boost its presence in Europe and emerging markets, as well, the acquisition would help them gain a lung disease drug from Nycomed which has just been approved in the U.S. Japanese drugmakers have been actively pursuing acquisitions to boost growth as they face the loss of patent protection on key medicines.

A planned rescue deal involving Saab and China’s Hawtai Motor Group collapsed after it failed to get necessary approvals, leaving Saab’s owner, Spyker, chasing new funding alternatives to restart production at the Swedish automaker. Spyker said it was continuing talks with Hawtai, while a Reuters exclusive reported the Dutch sportscar-maker was also talking to another Chinese company, Great Wall Motor about a possible tie-up.

Glencore’s CEO Ivan Glasenberg said recent falls in commodity prices were due to “froth” in the market and had not affected strong demand for the company’s IPO. Commodity price volatility in the past week has prompted worries over Glencore’s planned $11 billion IPO, with fund managers sensing an opportunity to drive down prices. The commodities giant recently unveiled the prospectus for their IPO, detailing plans to raise funds in a dual listing in London and Hong Kong.

Hedge fund manager Raj Rajaratnam was found guilty on all 14 counts of insider trading, and could face at least 15 years in prison. The Galleon founder was at the center of the biggest insider trading investigation in decades and the use of phone taps in his conviction may have marked a turning point in prosecution of Wall Street crimes. This piece in the New York Times by Peter Lattman and Azam Ahmed takes a look inside Rajaratnam’s circle of friends and business associates, and how they played a crucial role in his scheme.

 

Deals wrap: Fiat speeds toward control of Chrysler

A new model of the Fiat 500 is pictured on display at the launch of Chrysler's flagship showroom in Los Angeles November 16, 2010. REUTERS/Mario Anzuoni Fiat will pump another $1.3 billion into Chrysler this quarter as it moves closer to its target of owning a controlling stake in the U.S. automaker. The deal will take Fiat’s holding in the company to 46 percent, just 5 percent shy of the 51 percent it needs to assume full control.

Read the politically charged, behind-the-scenes story of how the Singapore Exchange failed in its bid for a full takeover of Australian stock exchange operator ASX.

The prosecution amped up the tone of its attacks on Raj Rajaratnam in closing arguments at the insider trading trial of the hedge fund manager on Wednesday, saying the Galleon Group founder wanted to “conquer the stock market at the expense of the law.” The jury is expected to begin deliberations once the defense wraps up its closing arguments either Thursday or next Monday.

Deals wrap: ING Direct USA up for sale

CIT Group CEO John Thain is shown in New York in this November 17, 2009 file photo. REUTERS/Brendan McDermidDutch financial group ING has kickstarted an auction to find a buyer for its U.S. online banking operation ING Direct as part of an effort to raise funds to pay back state aid it received during the financial crisis in 2008.

A report in the New York Post said the sale could raise as much as $10 billion and that several institutions had expressed an interest in buying the unit, including U.S. consumer lender CIT Group, which is now run by former Merrill Lynch CEO John Thain (right).

Prosecutors present opening arguments in their insider trading case against Galleon Group founder Raj Rajaratnam, who they say built an elaborate network of stock tippers who helped him gain $45 million in illicit profits between 2003 and 2009.  NYT’s DealBook connects the dots in the complex Galleon network with a helpful visual graphic.

Deals wrap: Icahn turns inward

Investor Carl Icahn speaks at the Wall Street Journal Deals & Deal Makers conference, held at the New York Stock Exchange, June 27, 2007.  REUTERS/Chip East Seems billionaire investor Carl Icahn has had enough of managing money for outsiders. The 75-year-old stock picker dropped a bit of surprising news on Tuesday when he said he plans on returning all of his clients’ money, making him the latest in a string of investors to do so.

Barnes & Noble’s bid to reinvent itself as a formidable competitor in the burgeoning e-books sector is off to a solid start. Its Nook is the second best-selling e-reader on the market behind Amazon’s Kindle, and the book chain’s chief says it has 25 percent of the e-books market.  So why can’t the bookseller find any buyers? Reuters correspondents Phil Wahba and Jessica Hall take a closer look in a new piece.

Jury selection in the trial against Galleon Group hedge fund founder Raj Rajaratnam kicks off the action today in a case at the heart of the biggest insider trading investigation in a generation.

Deals wrap: Galleon trial to be a “battle royal”

Raj Rajaratnam, the principal in the $21 million Galleon Group hedge-fund insider trading case, leaves Manhattan Federal Court for a bail hearing on conspiracy and securities fraud charges in New York, January 12, 2010.  REUTERS/Shannon Stapleton The insider trading case against Galleon Group hedge fund founder Raj Rajaratnam finally goes to trial next week. Rajaratnam faces up to 25 years in prison if convicted of conspiracy and securities fraud but plans to fight the charges and clear his name in court.

“All signs are pointing to a battle royal,” one securities attorney said of the upcoming trial in an interview with Reuters correspondent Grant McCool. According to a Wall Street Journal report, Goldman Sachs CEO Lloyd Blankfein has agreed to testify for the U.S. government at the trial. Here’s a rundown of some of the other main players involved in the case.

Should Americans be alarmed that Germany’s Deutsche Boerse is taking over Big Board parent NYSE Euronext? Not really seems to be the consensus with lawmakers and regulators who took part in the Reuters Future Face of Finance Summit this week.

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