The Banking and Strategy Initiative

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Advantage Dealbook: The best from the deals business last week (This weeks Investment Banking burn on Sunday )


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Welcome back to the dealbook. With May gone and ING on the table, $82 bln deposits taken for $10 bln, June is a good month for deals

While most strategy agents like me would advise you to use larger cash for purchases, Capital One got away with $2.8 billion in Stock dilution (56 mln shares)  for a stake to ING. Even further down, WSJ Pro reports HCA, i.e. Hosptals Corporation of America is buying Colorado ventures for $1.45 bln from its overnight lines (revolver) According to Vipul Monga, they also paid a $2 billion dividend to their Private Equity owners from the same Emergency Cash service which they don’t have much left on in case payments in healthcare come due. Talk about living on the edge…the HCA team expects $1 bln in Free cash flow to pay down he revolver or pay interest on the Fed rate till end 2012

Advertising company Admeld might become a bitter pill to swallow for Google as it becomes eligible for a antitrust review by the DOJ. Google’s earlier AdMob and Doubleclick purchases  for less than $3 bln had passed muster and like all borrowed inspiration in digital. google sunk Doubleclick without batting an eyelid. Admeld is an ‘auction’ platform for me and you as publishers to offer to Advertising customers and plugs into Doubleclick according to the WSJ


FBAR regulations have been tightened at banks and that means that those keeping a job in HSBC Barclays and even the Wall Street firms will have much more paperwork for their foreign owned accounts That definitely skews the pitch for HSBC and Deutsche Bank. HSBC’s older deposits in Buffalo however are not getting deal traction for other reasons. I wonder what is holding that deal back. Cap One was more than willing to pay to ING Direct?

There was a deal in retail lifestyle space with my personal old favorite Wrangler owner VF Corp also purchased a jumbo stake worth $ 2 bln in Timberland. Timberland outdoor sales adds $1.5 bln to the VF Corp Portfolio to $4.5 bln including Janson Sports. Jeans, uniforms and Sports wear make another $4 bln in sales for VF Corp making it a really tough nut to crack in the coming consumption circle. Perhaps they could teach retailers Gap and MAcy and now even us a t Wall Street want to learn about effective cost cutting for profits wand for a positive brand thruput and increased Brand Values.

Before going away, did I tell you the super efficient Europeans in Basel have stolen the American Surcharge on SIFI banks sought by regulators last week. The Surcharge will now apply to 30 top global banks tagged as Globally Systematically Important FIs ( G-SIFIs) on a sliding scale of 0.5-2.5% Booyah! Check for more posts on that topic thru the week. 

Also please check the next post as after the Digital 2.0 kings, the money masters both Carlyle and Oaktree Capital finalise their plans to go public following Blackrock and KKR into public fund of junk acquisitions 😀


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5 comments on “Advantage Dealbook: The best from the deals business last week (This weeks Investment Banking burn on Sunday )

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