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’Cerberus plans IPO for gun maker
Cerberus is in advanced preparations for an IPO of Freedom Group, a little-known company that has become a dominant player in the rifle-and-ammunition business, reports the WSJ. Over a three-year span,
Cerberus to ‘lock up’ funds
Cerberus, the investment group, will bar investors in two new hedge funds from withdrawing money for three years to avoid a repeat of the large outflows that followed its lossmaking purchases of Chrysler and GMAC,
Warner Chilcott harks back to the good old (leveraged) days
Who said leveraged loans are dead? There were echoes of the good old days of highly leveraged deal-financing with news that specialty drug maker Warner Chilcott is expected to announce as early as Monday the acquisition of Procter & Gamble’s prescription-drug business for more than $3bn.
Shinsei, Aozora to reveal merger plans
Shinsei and Aozora, two lossmaking Japanese banks backed by US buyout groups JC Flowers and Cerberus, are on Wednesday of their merger. The deal will create Japan’s sixth-largest banking group and help consolidate the Japanese government’s holdings.
Shinsei confirms Aozora talks
Japan’s Shinsei and Aozora banks – which are part-owned by US buyout groups – confirmed on Thursday they are in merger talks to create the country’s sixth-biggest banking group, with assets of about Y18,000bn ($187bn).
Aozora, Shinsei rise on merger talks
Shares in Aozora Bank, the Japanese lender controlled by Cerberus Capital Management, and Shinsei Bank, backed by billionaire Christopher Flowers, rose in Tokyo trading after the banks confirmed they are in merger talks,
Cerberus loses senior European partners
Cue classical allusion about losing heads etc.
So depart Ken Leet and Jeff Lubin – the two senior-most partners at Cerberus in Europe. Full story over at Financial News.
The gist of things is that Cerberus is scaling back its European operations quite significantly.
Cerberus to close HK office
Cerberus, the US buyout firm, is in advanced discussions to close its Hong Kong office in the latest sign of industry giants scrambling to reduce costs amid the global economic slowdown. Cerberus’s move comes less than two years after it opened the Hong Kong office in expectation of a steady rise in China-related business.
Chrysler faces equity carve-up
Chrysler’s restructuring plan could see the combined equity of owners Cerberus and Daimler shrink to less than 10%, with the rest of the company divided between the US government, the United Auto Workers’ union,
Aozora pushes Cereberus closer to the gates of Hell
The year just seems to get worse for Cerberus, which is watching key investments such as Chrysler and GMAC flail as it tries to cut even its own staff and costs – and it’s only mid-February. Clearly,
Focus DIY chief blasts insurers
Focus DIY, the UK home improvement retail chain, has called for a government investigation after the company’s credit insurers withdrew almost all cover for its suppliers. Less than 5% of the stock Focus buys is now insured,
Cerberus takes its own medicine
Cerberus Capital Management, the private equity group specialising in stripping costs out of struggling companies, is taking some of its own medicine with plans to cut 10% of its 275 members of staff. While Cerberus is the latest in a string of big buy-out groups to announce cost-cutting measures,
Bailout creep: Chrysler Financial has a clever new plan
Is there no end to bailout creep and the many ingenious ways that US car makers and others are hatching fresh ideas to access federal bailout funds, government subsidies, loans and any other kind of public aid?
In the latest brazen attempt to double-dip into public coffers,
GM, Chrysler, re-open merger talks
GM and Chrysler have reopened merger talks, as Chrysler owner Cerberus has signalled its willingness to give away part of its ownership in the auto maker, reports the WSJ. With cash running low at both companies,
Woolworths bid could come in a week
The Woolworths brand could be sold within a week as potential buyers including Theo Paphitis, the entrepreneur and TV game show judge, line up possible bids for the failed variety retailer. Neville Kahn,
Investors flee buy-out funds
Investors in buy-out funds are so concerned that private equity returns will slump in coming years that they are selling their commitments for as little as 30% of their original value. If such stakes were available at all 18 months ago,
GM, Chrysler, step up merger talks
General Motors and Chrysler are accelerating merger discussions amid strong support from potential lenders that are eager to see a deal done, reports the WSJ. GM is set to report dismal Q3 earnings in coming weeks and is scrambling to find new sources of funding,
Daimler set to sell Chrysler stake to Cerberus
Daimler is preparing to sell its remaining minority stake in ailing US carmaker Chrysler to private equity group Cerberus, in a move that would mark the final act of a 10-year-long combination. The German premium car group on Wednesday confirmed it was in talks with Cerberus,
Australia’s CSL to buy Talecris for $3.1bn
CSL, the world’s second-largest maker of specialised blood transfusion products, agreed to buy Talecris Biotherapeutics of the US for $3.1bn cash, boosting sales by more than a third with its biggest acquisition,
Chrysler taps $2bn line of credit
Chrysler tapped a $2bn credit line from its owners, Cerberus Capital Management and Daimler, to bolster the auto maker’s liquidity amid a painful downturn in US sales that is stretching its resources, reports the WSJ.
GMAC and ResCap secure lifeline
GMAC and Residential Capital, GMAC’s embattled mortgage lending arm, on Wednesday secured an urgently needed $60bn rescue financing package to help stave off the threat of a ResCap bankruptcy filing.
GMAC, Cerberus aid struggling ResCap
Residential Capital, the US mortgage lender owned by GMAC, is grappling to raise $2bn in the next four weeks to meet urgent liquidity needs and satisfy the terms of its debt agreements. ResCap said in a securities filing that its inability to complete asset sales and losses on some hedges had boosted its near-term cash needs by $1.4bn more than expected.
Investors share GMAC and Chrysler woes
The fallout from the troubles at Chrysler and GMAC could extend beyond Cerberus Capital Management as it has emerged that the buy-out firm has sold “significantly” more than half its equity to about 90 investors.
Cerberus, CIC talk on co-operation
Cerberus Capital Management said it has had talks with China’s sovereign wealth fund about possible co-operation. John Snow, chairman of the US buy-out group and former US Treasury secretary, said there
Chairman’s departure a blow to Aozora
Kimikazu Noumi is set to step down as chairman of Aozora in a setback for the Japanese bank that is 45.5% owned by Cerberus, the US buy-out firm. Noumi, who joined Aozora just a year ago as chairman and chief executive,
Aozora hit by shareholder plans to sell
Shares in Aozora, the Japanese bank that is 45% owned by US private equity group Cerberus, fell sharply on news that one of the bank’s largest shareholders is planning to off-load its stake. Aozora’s shares,
US groups agree deal on Japan’s Goodwill
Morgan Stanley and Cerberus, the US private equity fund, have agreed to invest at least Y20bn ($194m) in Goodwill, a Japanese staffing company whose shares have been hit by a series of scandals. The deal could be worth as much as Y100bn,
Cerberus “humble and hungry” and hating the publicity
This is worth a read, if only to witness the personal angst of Cerberus founders Steve Feinberg and William Richter – a nine page letter, obtained by the Wall Street Journal, from the buyout firm to its investors.
Weekend catch-up: Qataris & Credit Suisse, Rock
Qatari’s poised to take $3bn stake in Credit Suisse
Powerful funds backed by the Qatari government are considering assembling a significant stake in Credit Suisse, one of Europe’s largest banks, reported The Sunday Telegraph.
UK confirms £30bn bond support for Rock
UK taxpayers are set to support stricken mortgage-lender Northern Rock for at least the next three years, under a government-sponsored financing plan likely to raise public sector net debt by close to £100bn.