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Reuters UK – Lehman Brothers has intensified talks with Korea Development Bank to raise as much as $6 billion (3.3 billion pounds) in a share sale that could be concluded this week, the Sunday Telegraph reported.
South Korea’s KDB KDB.L could buy up to 25 percent of the struggling U.S. investment bank, the paper said, without specifying sources. A spokesman for state-run KDB declined to comment.
A senior source at the Financial Services Commission FSC.L, told Reuters South Korean authorities would not oppose or support any deal until price details were known.
That appeared to mark a shift by the regulator, which previously said KDB should let local private banks take the lead in any international acquisitions, dashing hopes for a direct deal with Lehman.
MarketWatch – James Pallotta, vice chairman and managing director of U.S. public equities at Tudor Investment Corp., is leaving the giant hedge fund firm and plans to launch the Raptor Global Funds unit he runs as a separate business, according to a letter Tudor sent to investors this week.
Pallotta will spin off Raptor at the end of 2008 and set up a new, independent firm that will initially focus on public equity investments, Tudor explained. Over time, Raptor will branch out into private investments too, the firm added in the letter, a copy of which was obtained by MarketWatch.
"Tudor will support Jim in the creation of his new firm and anticipates that it will invest capital in new funds Jim launches," Paul Tudor Jones II, chairman of Tudor, wrote in the letter. "We expect there will be many opportunities for collaboration on investments in future years."
A spokesman for Tudor said the firm declined to comment.
Pallotta will continue to manage the Raptor Global and Altar Rock Funds as well as a portion of Tudor’s main BVI Global Fund. On Jan. 1, 2009, the management of the Raptor Global Funds will transition to the new firm.
Reuters – HSBC Holdings on Thursday denied a South Korean media report saying it had agreed with U.S. private equity firm Lone Star to set a new deadline for a $6.3 billion deal for control of Korea Exchange Bank.
"We have not created a deadline," HSBC spokesman David Hall said.
"Our original position stands, in that either side has the option to walk away, but we made it clear we are interested in continuing this deal."
Online news outlet EDaily, citing financial industry sources, reported that the two sides had agreed to maintain the deal, which was supposed to be wrapped up by July 31, until the end of September.
Lone Star’s PR agency in Seoul said there had been no announcement on an extension to the deal, declining to comment further. A KEB spokesman said he was not aware of any developments.
New York (HedgeCo.Net) – The private equity firm Carlyle Group will liquidate its lone hedge fund, after stating that it failed to achieve “critical mass.”
The fund, Carlyle-Blue Wave Partners Management LP, was a multi-strat fund launched by Rick Goldsmith and Ralph Reynolds. The two managers previously served as co-heads of global equity derivatives at Deutsche Bank.
"This is an orderly liquidation to ensure fair and equitable treatment of all investors," said Carlyle spokesman Chris Ullman.
The fund was among many to suffer losses fueled by the credit crisis that starting brewing last summer. After posting losses in 2007, the fund looked to be turning around and even showed gains of 2 percent in 2008. However, Carlyle said they could not keep up with the cost associated with staff and infrastructure and decided to go forth with the liquidation.
According to a statement published on the company’s website, the fund was "launched in a challenging market and [has not] been able to achieve the critical mass of assets under management necessary to support a multi-strategy fund infrastructure."
Assets under management are now estimated at $600 million, $300 million less than its peak.
Julie Scuderi Senior Editor for HedgeCo.Net Email: julie@hedgeco.net
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Wealth Bulletin- A spokesman for the HFWG confirmed last week that the guidelines, which were aimed at raising governance levels across the traditionally secretive industry, have found no support beyond the original 14 signatories – including Man Group, Brevan Howard, Och-Ziff Capital Management and CQS.
At the publication of the 28 principles more than five months ago, HFWG chairman Sir Andrew Large had urged investors to help take the matter forward, adding that this was essential to ensure a wide adoption of the disclosure-based voluntary initiative.
