Firms and Funds

NEW YORK (Reuters) – Insurer American International Group Inc, working to stave off rating downgrades and shore up the capital of its holding company, has made an unprecedented approach to the Federal Reserve seeking $40 billion in short-term financing, the New York Times said. Chief Executive Robert Willumstad reached out to the Fed late on […]

(Reuters) – Wilbur Ross, founder of private equity firm WL Ross & Co LLC, expects as many as a thousand U.S. bank closures in the coming months, CNBC said on its website on Monday. The billionaire investor, who made his fortune making investments on distressed industries, said the closures will create opportunities for investors, CNBC […]

WASHINGTON/NEW YORK (Reuters) – Bank of America Corp said it agreed to buy Merrill Lynch & Co Inc in an all-stock deal worth $50 billion, snagging the world’s largest retail brokerage after one of the worst-ever weekends on Wall Street. The deal came after tense negotiations over the fate of Lehman Brothers Holdings Inc, which […]

You had to know this was coming. Steven Lerner, who runs the private equity watchdog part of labor union SEIU, has just issued a statement related to the possibility that KKR or another PE firm (J.C. Flowers, Bain, Hellman & Friedman...) may buy a piece of Lehman Brothers. Here it is: The Lehman Brothers scramble is not the time to allow KKR or other buyout firms to break into banks. And under no circumstances should taxpayers underwrite a marriage between banks and buyout firms. KKR and other buyout firms have made clear their intention to move into banks – and are lobbying hard to tear down important regulatory safeguards. But with their risky debt strategies, exorbitant fees, and poor track record outside their core

Yeah, that headline kind of wrote itself. The Deal is reporting that Change Capital Partners, a UK-based private equity firm focused on the retail sector, has changed ownership. This is a secondary sale of limited partner interests, but is particularly noteworthy because Change only has one outside limited partner on its €300 million debut fund. That would be the Halley family, which was once bosom buddies with Change Capital founder Luc Vandevelde. The Halleys in 2004 asked Vandevelde -- former chairman of UK retailer Marks & Spencer -- to serve as their representative on the board of French retailer Carrefour SA, of which the Halleys were the single largest shareholder. He soon became company chairman, but last year was ousted following a power struggle with the Halleys (reports were that he was seeking PE backers to take Carrefour private). So it's not terribly surprising that the Halleys

NEW YORK/WASHINGTON (Reuters) – Concern that Lehman Brothers Holdings Inc may fail to find a buyer because the U.S. government is reluctant to provide financial backing sent the investment bank’s shares tumbling to a nearly 14-year low on Friday. Bank of America Corp (BAC.N) was widely seen as a leading contender for the role of […]

(Reuters) – Bank of America Corp. will likely win the auction for Lehman Brothers Holdings Inc, said analyst Richard Bove, after sources said Lehman and U.S. officials were in intensive discussions about a number of options, including a complete sale of the company. “I believe that Bank of America will win the auction for Lehman […]

NEW YORK (Reuters) – Lehman Brothers Holdings Inc has put itself up for sale as its survival was called into question, and its shares tumbled about 42 percent. Chief Executive Dick Fuld has stepped up his efforts to sell the whole firm, instead of just a piece of its business, sources familiar with the situation […]

NEW YORK (Reuters) – Goldman Sachs Group Inc (GS.N) is not pursuing an acquisition of Lehman Brothers Holdings Inc (LEH.N), reflecting concerns that integrating two large investment banks would be too disruptive, sources familiar with the situation said on Thursday. As Lehman stock plunged 37 percent to a new low of $4.52 a share, there […]

NEW YORK (Reuters) – Lehman Brothers shares lost about 40 percent on Thursday as Wall Street questioned whether the investment bank will survive because of its failure to sell assets to cover losses from toxic real estate investments. In early trade, the stock was recently down $2.92, or 40 percent, at $4.32 as analysts voiced […]