Erin Griffith

Got Comments for Sheila Bair? Here's where you'll be able to submit ‘em and read others. (FDIC) The End of Retirement: Demography means virtually all of us will have to work longer. (Economist) Glass Boardroom: Do women in the board room help a company's stock price? Ask the anecdotal evidence: Lucy Kellaway. (FT) Lowbrow Connections: What does Paris Hilton have to do with Ponzi schemes? Well, it's a long story, but it involves a Miami fraudster, a movie about sororities and Paris shirking on the job. (AP) At It Again: Do we call him the Oracle because of his ridiculous metaphors (which all too often involve sex)? Warren Buffet is at it again, this time suggestion we need a second stimulus bill and comparing the first stimulus to half a Viagra pill (why half?) and candy (what kind? These things matter...). (ABC news)

Now that the weather has finally warmed up, plenty of M&A bankers are hoping the market for deals will as well. We’ve noticed a few more targets coming to market in recent weeks and have compiled a list of some of those we’ve come across. Our sources are various news reports and the Buyouts “Seeking Buyers” list. The following companies (among many others) are either formally considering “strategic alternatives,” reported to be on the block or are rumored to be in sales talks. For prior lists, see below, and send any additions my way. Neo Material Technologies Inc., backed by Pala Investments AG, is believed to be an acquisition target, according to Dow Jones. Smith & Hawken, the luxury garden supply retailer owned by Scotts Miracle-Gro, will liquidate its assets. Noveko International Inc, a Canadian medical equipment maker, said it is considering all possible options for its Bolduc Leroux Inc unit.

M&A may be ice cold in most sectors, but it's at least lukewarm in the world of middle market technology. Take for example, the recent heated auction for SumTotal Systems. There's also the go-shop struggle for Greenfield Online, and Symphony Technology Group's purchase of MSC Software. My eyes happen to be on Thoma Bravo's bid for Entrust, the fate of which will be decided by vote on Friday. Not because of Entrust's technology, per se, but because of the sale process' inherent conflicts of interest. The publicly-traded digital security business company received three bids during the go-shop period for its agreed-upon sale to Thoma Bravo. Notably, Thoma Bravo's already-sweetened bid for $1.85 per share is below a previously rejected $3 per share offer from an unnamed strategic. For unknown reasons, the board deemed those three go-shop bids inferior. Thomas Kirchner at Seeking Alpha suspects that that curious decision has everything to do with management. See, the deal was structured as what I've heard some analysts call a "BIMBO": Buy-In-Management Buyout.

Private Equity Take A Gamble? Firms are shy no more regarding the online gaming sector, writes Mervyn Metcalf of Global Leisure Partners. (EGaming Magazine) Facebook: The Movie: There's a screenplay called "The Social Network" that's supposedly a tell-all of the inner workings of Facebook. Juicy... (CNET) Buck up! Hiring in finance is creeping back. (WSJ) Then again: Only the employed need apply-"many employers are bypassing the jobless to target those still working, reasoning that these survivors are the top performers." (WSJ)

The final version of the FDIC's proposed rules for private equity investments in banks won't take effect for at least a month, but that won't stop news organizations from digging around. Today the NY Post contradicted our report from yesterday which quoted Wilbur Ross calling the FDIC roundtable discussion "highly productive." Ross seemed hopeful that the FDIC would grant a few concessions on the agency's strict proposed rules. The Post took a different bent, painting FDIC Chairman Sheila Bair as "unmoved" by the buyout firms' pleas. Citing an anonymous source, the story said "regulator has made her mind up when it comes to PE firms buying banks: Thanks, but no thanks."

In the latest breaking development of the Case of the Stolen Secret Sauce, my colleagues at Reuters have alerted me to a mildly amusing Youtube video of Sergey Aleynikov, the Goldman Sachs programmer who was arrested for allegedly stealing proprietary trading code from the firm, performing a ballroom dance on a cruise. Since his arrest, Aleynikov has been released on bail, telling authorities "he had only intended to collect "open source" files on which he had worked but "later realized that he had obtained more files than he intended," according to Reuters. Watch him go ballroom after the jump:

Ouch: Ohio's state "rainy-day" money has dwindled from $1 billion to 89 cents. (WaPo) So its true: Or at least appears that way. Companies file bad news on holidays. (Footnoted) Why the SBA's New Loan Program Stinks: It's tough to qualify for this $35,000 offer unless you're in immediate danger. (BW) Yikes: Now bankers, once the target market for some alcohol ads, are the butt of the joke. (Streetwise) Pope Speaks: He says the economic system is showing the effects of sin. (NY Times)

We’ve seen plenty of evidence that finance and rock music don’t mix: Take Terra Firma’s disastrous investment in music publisher EMI, which has led to a lawsuit from Pink Floyd, or Bank of America’s cringe-worthy U2 theme song, “One Bank”. But Sterling Partners is hoping to change that with its latest investment in The Paul Green School of Rock Music. The business is exactly what it sounds like—a training school for aspiring kid musicians. Founded in 1998, the Paul Green School of Rock requires its students to form bands and perform, which, according to CEO Matt Ross, is a highly effective method for motivating students. The school was the star of a documentary called “Rock School” and bills itself as the “apparent inspiration” for the hit comedy, “School of Rock,” starring Jack Black. (Paramount Pictures has not admitted to the inspiration, Ross noted.)

The largest buyout of the year is now half as large, from the lead sponsor's point of view. Before even closing its agreed-upon $1.8 billion buyout of Korean beer-maker Oriental Brewery, buyout firm KKR has decided to sell half of the company to Asia-focused buyout firm Affinity Equity Partners. Affinity will help the firm bear the equity load and "share investment risks." The surprising part here is pricing-Affinity gets a 50% stake in Oriental Brewery for a mere $400 million. That's just 22% of what KKR paid for the company, meaning Affinity is getting a half-off discount to the total deal value. Why would KRR let Affinity in for such a cheap valuation? The answer lies in the debt. When you break down the company's capital structure, you find that Affinity is actually paying a small premium.

Say Goodbye to 2%: That 20% is probably due to change soon too. (Bloomberg) Up a Down Staircase: A Deal feature looking at the Private Equity Deals of the Year. Basically it's a ranking of the most significant deals (which, to me, seem inextricably linked to either the biggest, most profitable, or least profitable, but the Deal professes they are not.) The headline says it all: Up a down staircase. Is that a reference to these poor ducks? (The Deal) But! Closing Bell Is Tolling for SPACs: Deadlines on shell companies loom large. (WSJ) Sell! Time to lighten up on junk bonds. (Aleph Blog)