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Reuters – European private equity firms are keen to start bringing their best-performing portfolio companies to market, encouraged by early successes on the other side of the Atlantic.
Last week KKR successfully listed semiconductor business Avago Technologies Ltd and is considering listing a number of other companies as markets warm to new arrivals.
”It is not clear yet whether there will be an IPO window but we believe that there may be an opportunity for strong resilient businesses to float in the first half of next year,” said Kurt Bjoerklund, co-managing partner of Permira.
Independent – Hedge funds Apollo and Octavian have been quietly building up a position in ProSieben, one of Europe’s biggest commercial broadcasters. The move could lead to a showdown with private equity owners Permira, the Damon Buffini-run giant, and Kohlberg Kravis & Roberts (KKR). Lord Hollick, who was chief executive at former Daily Express owner United Business Media, represents KKR on the ProSieben board.
It is understood that Apollo and Permira have been buying the struggling German broadcaster’s debt on the cheap. Sources suggested that the pair had been paying only around 30cents for every euro of debt, allowing them to become, in effect, major creditors. "Apollo and Octavian have been buying up debt that is trading at distressed levels and I can see them taking on Permira and KKR over the direction of ProSieben," said a source.
Bloomberg – Blackstone Group LP, the world’s largest private-equity firm, fell to a record low in New York trading this week on concern that a rebound in leveraged buyouts will lag behind any economic recovery.
“Given the economic outlook and pressure on asset values, even on existing investments, it’s going to be a while before they have a chance to come back,” said Robert Lee, an analyst with Keefe, Bruyette & Woods Inc. in New York. “It’s hard for investors to see through that valley.”
After announcing about $169 billion of buyouts in 2006 and 2007, New York-based Blackstone has since completed $9.2 billion of deals. An absence of financing for new acquisitions and an inability to sell current holdings have idled the firm and competitors such as KKR & Co. and Carlyle Group LP. Investors say deal won’t resume until after the economy starts to grow and banks can rebuild capital depleted by losses on mortgage-backed securities and previous LBO loans.
Blackstone, run by Chairman Stephen Schwarzman, probably will report a loss tomorrow of 31 cents a share, its third in the past four quarters, according to the average estimate of seven analysts in a Bloomberg survey. The company had a profit, excluding some costs, of 8 cents a share in the same quarter a year earlier.
Of the nine analysts who rate Blackstone shares, six have ratings equivalent to hold, including Lee. One analyst, Barclays Capital’s Roger Freeman, suggests selling the stock. Two recommend clients buy the shares.
Blackstone dropped below $4 a share for the first time on Feb. 23, closing at $3.89, almost 90 percent less than its $31 initial public offering price in June 2007. The stock declined 17 cents to $4.12 yesterday in New York Stock Exchange composite trading.
Fort Worth Star Telegram – That sure looked like the Alaska governor moose hunting in downtown Fort Worth on Wednesday.
And she found an already-well-stuffed target: business and political leaders generously donating money for Christmas gifts for 1,500 children, thanks to the Exchange Club of Fort Worth.
By the time Sarah Palin look-alike Kristy Casey of Houston winked her last "You betcha!" and introduced Fort Worth lawyer and political pooh-bah Dee Kelly as a "maverick," the 160 members of the tradition-rich civic club had toasted the holidays and taken up $75,000 for the Star-Telegram’sGoodfellow Fund.
"The Guv" teased Kelly by presenting him a double-sided political yard sign supporting two 2010 candidates for governor: U.S. Sen. Kay Bailey Hutchison and aspiring governor-for-life Rick Perry. The Palin double also dropped off a belated Wendy Davis campaign sign for Fort Worth Mayor Mike Moncrief, a Democrat who backed Republican state Sen. Kim Brimer in a moose-sized defeat.
