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’Olivant puts its marker on Rock
Olivant, the buyout group run by Luqman Arnold, former CEO of Abbey National, is expected to lodge its bid proposal on Thursday or Friday for the stricken UK bank Northern Rock. Olivant was on Wednesday night finalizing details with Lazard,
Bidding war seen for Northern Rock
Alistair Darling, UK chancellor, is hoping Northern Rock’s future can be decided within weeks, as his officials encourage the troubled bank to look beyond Virgin, its preferred bidder, at rival offers.
N Rock needs £1bn cash, say Flowers, Branson
At least two of the bidders for Northern Rock believe the stricken mortgage lender will need a substantial injection of new cash to shore up its capital base and allow it to carry on making new loans. Both Christopher Flowers,
As Cerberus ditches Rock, and United Rentals sues
US buyout group Cerberus has dropped plans to table a bid for Northern Rock, dealing another blow for the beleaguered bank, reports The Times. Cerberus was one of four parties thought to be considering serious offers for the bank but is believed to have been put off by continued turmoil in global financial markets.
Cerberus abandons $7bn deal as Alltel founders
Cerberus Capital Management has pulled out of its $7bn deal to buy United Rentals, making the planned private equity takeover of the world’s largest equipment lender the latest casualty of the credit squeeze.
Cerberus chief hits at tax rise proposal
John Snow, the chairman of Cerberus and former US Treasury secretary, has attacked a proposal to raise taxes on private equity profits, claiming it would weaken America’s economic engine at the worst possible moment. In October,
Banks to launch Chrysler loan offering
In a sign of the gradual recovery of the corporate-loan market, Wall Street investment banks plan to launch on Wednesday an offering of up to $10bn in loans for Chrysler automotive business, reports the WSJ.
Cerberus withdraws $8bn offer for ACS
Cerberus Capital Management on Tuesday night withdrew its offer worth $8bn, including debt, to acquire Affiliated Computer Services, the US technology group, blaming the credit squeeze and the refusal of the company’s board to negotiate a deal.
Northern Rock foundation calls in advisers
Northern Rock’s charitable foundation, which would have a 15% stake if the UK bank was bought, has appointed financial advisers to protect its interests. Shares in the troubled bank rose 12% to 151.8p,
Flowers’ group closes in on Rock
Hopes rose of a rescue for Northern Rock, the troubled UK mortgage lender, as it emerged Tuesday that JC Flowers, the private equity group led by Chris Flowers, the former Goldman Sachs banker, had secured about £15bn of funding which could be used for a takeover.
Northern Rock slides as Artemis declares stake
Northern Rock shares reached an all-time low of 132.1p on Monday, falling 47.1p amid speculation that the most likely option for the troubled UK lender was a break-up or bid by private equity houses JC Flowers and Cerberus.
… As Flowers turn focus on Northern Rock
Veteran Wall Street dealmaker Christopher Flowers has been given access to Northern Rock’s books after tabling a takeover proposal for the stricken UK bank, reports The Daily Telegraph. Mr Flowers’ offer is believed to be the sole approach that would keep the bank together.
Nardelli accepts $1 a year at Chrysler
Bob Nardelli will collect a nominal salary of $1 a year in his new role as chief executive of Chrysler, say sources familar with his pay package. The former head of Home Depot’s compensation package at the US carmaker will be incentive-based.
Chrysler to name Nardelli new chief
Chrysler’s new owner, Cerberus Capital Management, has chosen former Home Depot chief executive officer Robert Nardelli as CEO, succeeding Tom LaSorda, reports Bloomberg, citing people with direct knowledge of the plan.
Nasser fronts Land Rover-Jaguar bid
Jacques Nasser, the former Ford chief executive, is to fly to Britain to visit the Land Rover and Jaguar factories as part of his attempt to buy back the iconic brands that he put together, reports The Times.
Debt problems weigh on buy-out boom
Multi-billion dollar financing for the Chrysler and Alliance Boots buy-outs foundered on Wednesday, fuelling fears of a looming credit crunch. Banks failed in their attempts to sell loans to finance the deals – even after offering higher interest rates.
Tata eyes Cadbury-Schweppes’ drinks arm
Tata, the Indian conglomerate, is considering a potential £7.5bn bid for the US drinks arm of Cadbury-Schweppes, reports The Times, citing India’s Economic Times. The Economic Times reported that Tata is interested in Cadbury’s Snapple range of beverages and is looking at teaming up with a private equity partner.
Cerberus in $4bn deal for United Rentals
US equipment rental company United Rentals said on Monday it had accepted a $4bn takeover bid from affiliates of Cerberus, the private equity fund, while still considering other offers, reports Reuters.
Delphi aided by $2.55bn equity deal
Delphi, North America’s biggest automotive parts maker, moved a step closer to emergence from court protection on Wednesday by agreeing to a $2.55bn equity infusion from a group of hedge funds and other investors,
Ford marques face up to six bids
Ford is expected to receive up to six indicative bids for Jaguar and Land Rover on Thursday, kicking off a surprisingly competitive auction of the UK luxury carmakers. Cerberus Capital Management, Ripplewood Holdings and One Equity Partners are among private equity groups understood to be planning bids.
Why the auto sector is ripe for private equity
The automotive industry could become a prime target for private equity and benefit from the funds’ more aggressive business style, provided the buy-out industry can still raise money for deals, according to studies by two global consultancies,
Cerberus to clean up Torex mess
Cerberus is looking something of a trooper. First the private equity group scooped up the Chrysler mess. Now it is aiming to take a UK problem case, Torex Retail, under its protection.
Torex confirmed on Wednesday that it had agreed to be acquired by Cerberus for £204.4m – most of which will pay Torex’s secured lenders with about £12m paid to financial and legal advisers on the deal.
Lloyds TSB paves way for Abbey Life sale
Lloyds TSB has started the long-awaited sale of Abbey Life, its closed life insurance business that is expected to fetch more than £1bn. The UK’s fifth-biggest bank is understood to have mandated Lehman,
Cerberus springs bid for RAG
Cerberus, the US private equity group, is offering up to €8bn to buy German conglomerate RAG, adding an extraordinary twist to one of the country’s biggest business and political sagas. RAG, a chemicals,
Cerberus closes in on Focus purchase
The sale of Focus DIY is expected to be agreed within days, with the chain’s creditors agreeing to a “haircut”. Cerberus, the US hedge fund which specialises in distressed debt, is expected to acquire the home improvement chain for up to £250m – below a total debt level of about £300m.
Kenwood sounds out Cerberus on JVC
Kenwood, a Japanese audio equipment maker, could enlist backing from US private equity firm Cerberus to help fund its bid for JVC, the ailing Japanese electronics company. This follows the collapse of efforts by US buy-out group TPG to buy Matsushita’s 52 per cent stake in JVC.
Cerberus joins race for Canada’s BCE
A group led by Cerberus Capital Management has joined the race for a buy-out of BCE, Canada’s biggest telecommunications operator. BCE confirmed on Wednesday that the Cerberus group, which also includes Canadian investors,
Shortlist drawn up for Sanyo chip unit sale
Cerberus, Blackstone Group and Longreach appear on a shortlist to buy Sanyo’s semiconductor operations – a deal that may fetch up to Y200bn ($1.6bn), according to people familiar with the matter. The companies are involved in four groups short-listed from more than 32 interested parties.
Private equity loses the plot on timing
Every time you think private equity has scaled the peaks of death-defying risk, a new Everest comes into view, writes Tony Jackson.
The real economic risk in Cerberus’s purchase of a clapped-out carmaker lies in taking on the $48bn of long-term financial liabilities.
Warner Music tries to buy EMI, again
Warner Music is to make its latest attempt to buy EMI, joining three financial bidders in the £3bn battle for the UK music group. The US music company, led by Edgar Bronfman Jr, has begun due diligence after gaining access to EMI’s books.