A kind of disturbing story today related to the pending $19 billion buyout of Clear Channel by Bain Capital and Thomas H. Lee Partners. As we’ve previously discussed, the deal is being opposed by a number of major CC shareholders, who claim that the $37.60 per share pricetag is too low. One such shareholder is […]
Last November, Bessemer Venture Partners and Insight Venture Partners agreed to acquire enterprise software company Netsmart Technologies Inc. (Nasdaq: NTST) for $115 million. It looked like a typical public-to-private buyout – save for the semi-oddity of venture capital firms doing the buying. No big deal. But certain Netsmart shareholders believed that the $16.50 per share […]
Last week, this space reported that Sen. Chuck Grassley (R-IA) was considering legislation that would result in increased taxes for the private equity industry. Part of the pretext was that Grassley has particular leverage because such a move was unlikely to ruffle any feathers in his home state of Iowa. After all, how often have […]
I’m in the market for new cellphones for my wife and me. She wants to replace her small clamshell with a smartphone so she can check email and keep tabs on her schedule (though, frankly, I’m not sure why since she always loses her phone and never keeps it charged, which as her co-dependent, I […]
I just finished being interviewed by a reporter about the possibility of a Chrysler buyout, during which I was asked the following question: “Do you think it could be a club deal?” My response was a more articulate version of “hell yeah.” The question’s undercurrent was this burgeoning notion that club deals are – or […]
The top news item on yesterday’s PE Week Wire was that federal regulators had charged several unnamed individuals with insider trading related to the $45 billion buyout offer for energy company TXU. Specifically, it alleged that the culprits stood to gain $5.3 million after having used inside knowledge to trade TXU stock options just days before […]
Update: Watch the video here. I’ll be on CNBC’s Sqwawk Box program tomorrow morning at 7:40am ET, to discuss how the recent public market correction will affect private equity and M&A activity. My initial thoughts harken back to a speech given by Scott Schoen of Thomas H. Lee Partners, during last year’s Yale Private Equity […]
Clear Channel Communications owns an enormous number of radio stations and billboards, but apparently believes that U.S. Postal is the best way to amplify its pro-buyout message. The company today is sending out a letter urging shareholders to vote in favor of a $19 billion offer from Bain Capital and Thomas H. Lee Partners, despite some […]
The TXU energy deal looks destined to become the biggest buyout ever. But the deal already may have set a record for the largest reverse break-up fee ever agreed to—an eye-popping $1 billion. In just the last two years, reverse break-up fees have become a common feature of going-privates and other large LBO transactions, a […]
Update: The deal was just announced. Download the press release here: TXU_Release.pdf The Blackstone Group’s claim to the largest leveraged buyout might not last more than a month. Various press reports suggest that Kohlberg Kravis Roberts & Co. and Texas Pacific Group are nearing a deal for Texan energy giant TXU that could be valued […]