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The Deal Economy(Pt. II): College Basket Ball, Dodd Frank, Smaller IPOs, more POPs and junk sales

LOUISVILLE, KY - JANUARY 05:  Preston Knowles ...

LOUISVILLE, KY - JANUARY 05: Preston Knowles #2 of the Louisville Cardinals shoots the ball while defended by Herb Pope #15 of the Seton Hall Pirates during the Big East Conference game at the KFC Yum! Center on January 5, 2011 in Louisville, Kentucky. (Image credit: Getty Images via @daylife)

Indonesia gets a large bank deal as Temasek gets an offer to sell 68% stake in Bank Danamon to Singapore based DBS and on the other side US states run a mega million jackpot that is the only rival to the $600 bln Apple market capitalisation, near double of Switzerland’s GDP. The most encouraging news for the market however is that the jumbo crop in Brail finally catered to the traditional demand and supply mechanics as Coffee prices fell after sticking around $47 for quite a while in the six months we have been talking of this Brazilian crop. Coffee prices for your cup of joe however will take another year to trickle down from Starbucks and its new Singles roaster to the GMCR original and the Maxwell House Filter coffees. Also, as usual we ride over the pages that mention another set of restatements from Groupon whose 2010 sales already count to barely

House Financial Services committee members sit...

House Financial Services committee members sit in the tiers of raised chairs, while those testifying and audience members sit below. (Photo credit: Wikipedia)

$312.9 mln a number which would not have let the IPO happen like for Twitter. Also the KFC Center at Louisville helped by “booze sales” hit a $40.9 mln revenue mark in 2011 even as the Cardinals get ready to shine the Wildcats at home  (according to Bloomberg Business Week) with $14 mln in sponsorships from Yum! and Luxury boxes that earn them $6 mln. Duke earns $28 mln in 2011 at the Cameron Stadium at #2 position without any name sponsors and luxury suites

The other news useful to your analysis on the last weekend of the quarter:

IPOs run pretty around the $100-300 mln mark

Apart from GasLog, which is managed by Citi and Goldman Sachs and traded at $12 and change after being priced at $14 undercutting its specified $16 – 18 range, many others including Enphase Energy on Friday managed by Morgan Stanley, DB and BofA(ML) that raised $54 mln and priced shares at $6 instead of the top of the range $9 and ended with 25% gains at $7.50. In March 11 of 178 IPOs were priced in or above the range of their S1 filed with the SEC and both Millenial Media and Annie’s jumped nearly 100% and closed more than 755 above the IPO price having priced it above the range. For the inestor the price point in all cases served the purpose of deciding whether it will pop or drop

GLOG could be a good pick as it is using the cash to buy(pay for) 8 new LNG tankers

A shortlist of all you could buy(?)

Things promoters and funds need to sell and have not sold yet: Sears Holding and Eddie Lampert would like to get rid of Lands End, CVC Capital is unloading 3 bln worth Starbev to Japanese Asahi. Starbev is the East European Operation of biggie Anheuser Bosch Inbev that CVC knocked off the megabeer trop in December 2009. SAB, Heineken and Carlsberg already have East European operations and are not buying

Polski: Etykieta piwa Heineken

Polski: Etykieta piwa Heineken (Photo credit: Wikipedia)

RIM is also up for sale as the new OS is now not on till end 2012. RIM’s patents are valued by Jeffries at around $1 blna nd the company in its current stae hardly $2.5 bln. Yahoo is still not done either. Apple’s been buying patents from Samsung, Freescale and Nortel while Google bought the $12.5 bln Motorola Mobility for its patents

The Asian Deal: Heineken buys controlling interest in UB Spirits Limited

India’s spirits supremo and owner of the ill fated Kingfisher Airlines, sold off a prized 13% stake to 38% owner Heineken from his personal holding int he Group star and owner of nearly 60% of india’s white spirits capacity. Mallya now holds 10% of the company and his UB holdings another 23%

MF Global makes firms cautious in March Badness?

Apparently, Joshua Brown, author of Backstage Wall street has published a March Madness Bracket of Champions of Scandal, in which MF Global and Greg Smith are in the Final Playoffs with Quattrone and even Mike Milken. Meanhile in ana after effect Colalteral desks responded in a Fed survey that they would rather have their collateral held by a third party after the take at MF Global was yet to be sorted out. Meanwhile, deponent Edith o Brien pleaded the Fifth in the hearing of the House Financial Services Committee investigation unit and huffed out after barely two questions, as the committee tried to find out about he $175 overdraft in London filled up by MF Global on Jon Corzine’s email instructions

Another Retail PE investment struts a late IPO

The Arts and Crafts retailer Michaels Stores to be traded as MIK was bought by Bain and Blackstone in 2006 hopes to finally raise $500 mln in an IPO to pay off up to $3.5 bln in debt. The $30 bln industry in Arts and Crafts is patronised by customers that are 77% times female and Michaels’ Sales are a respectable $4.2 bln in 2011

H Partners sues KKR, Sino Forest sues Muddy Waters

While Carson Block had quite a headstart in accusing Sino Forest and has recently avered to looking for investing in the company again, Sino Forest used a break in its bankruptcy filing dram to get back at Muddy Waters and Carson Block with $4 bln filed in damages , $3.5 bln for Defamation. Best of Luck Sino Forest!

Meanwhile Sealys’ 15% owner H Partners and investor FPR PArtners owning 7.7% filed against 46% owner KKR saying KKR cannot run the company like a fiefdom. Sealy has apparently paid $20 mln and more to KKR as consulting income. Recruting fees, insurance coverage and executive search fees were incurred directly by KKR and then reimbursed by Sealy . KKR;s’ 465 stake is worth $100 mln at best

Top Brokers losing the Rich and the Famous

Merrill and Morgan Stanley’s share of Top Wealth customers at their retail brokerage divisions has cut down to 42% from 56% in 2007. the 56% share, 45% in 2011 includes Smith Barney., Wells Fargo Advisors and UBS Wealth Americas in the qualifying category of $5 mln in assets. LAst month JP Morgan securities reported how its Private Client Business was succeeding against heavy odds. Gainers reported in the Cerulli study include surprisingly Credit Suisse, Deutsche Bank, BNY Mellon and Barclays and even SunTrust Banks and Northern Trust for their smaller operations

Senators to have the last word on Dodd Frank?

New Appointments at FDIC , OCC and other ruffled a few bankers’ feathers and a few analyst opinions as one of the key sympathisers for banks on the Volcker Rule, OCC’s Acting Director John Walsh was replaced by  a former Mass. banking regulator Thomas Curry who is suspected of not being interested in defending the banks’ unwavering point of view regarding the new regulation. Three new Directors were also confirmed at the FDIC incl Tom Hoening, Martin Gruenberg and J Norton, while several treasury officials also received confirmations from the Senate Banking Committee’s hearings last summer

In a twist Mitch McConnell ensured none of the four confirmed at President Obama’s behest were actually appointed to the Chief’s post  ignoring the President’s request for Martin Gruenberg and the leader would now likely be appointed after the November Elections. If Obama does indeed fail in his reelection attempt, GOP leaders could elevate Tom Hoenig to the President’s post at the FDIC, which won’t be fun for the banks.

Insider Trading case Lawyer rejoins Practice

Andrew Michaelson , a key prosecutor int he Raj Rajarathnam case is leaving the SEC to join Boies Schiller and Flexner in White Collar Criminal Defense

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One comment on “The Deal Economy(Pt. II): College Basket Ball, Dodd Frank, Smaller IPOs, more POPs and junk sales

  1. Pingback: Coty bids for LatAm boutique Avon | The Deal Economy | The Banking and Strategy Initiative

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