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Bloomberg – Billionaire Nelson Peltz and former Countrywide Financial Corp. President Stanford Kurland are among at least six investors turning to the public markets to finance purchases of distressed home loans and corporate debt.
The investors, most of whom previously relied on private partnerships for funding, have proposed since May 1 to raise $2.6 billion through public stock sales. They plan to use the money, along with government financing in some cases, to acquire mortgages and below-investment grade loans to companies that fell in value amid the collapse of the real estate and credit markets starting in mid-2007.
The Independent – Bramdean Alternatives Ltd, the investment fund started by Nicola Horlick, said it shouldn’t be wound up, as proposed by one of its largest investors.
Elsina Ltd, a British Virgin Island-registered investment company controlled by UK property investor Vincent Tchenguiz’s Consensus Business Group, on May 1 said it wants to remove five Bramdean directors and appoint three of its own choices. Elsina, which controls almost 29 percent of Bramdean’s dollar-listed shares, said the fund should consider closing.
Bloomberg – Greenlight Capital Inc., the hedge- fund firm run by David Einhorn, added to its holdings of Ford Motor Co. debt in the first quarter and invested in EMC Corp., Harman International Industries Inc. and Pfizer Inc.
The hedge fund bought Ford’s high-yield, high-risk bank loans at an average price of 37 cents on the dollar starting in the fourth quarter of 2008, according to a May 1 letter the New York-based Greenlight sent to investors. The debt rose to 45 cents on the dollar when the first quarter ended, said the letter, a copy of which was obtained by Bloomberg News.
Forbes – German Chancellor Angela Merkel on Thursday called on the European Commission to quickly approve Germany’s planned aid for lender Commerzbank as part of its bank rescue package.
Germany is in a dispute with the Commission over whether the aid for Commerzbank complies with the terms of the 500 billion euro ($633.4 billion) rescue fund that the EU has approved.
