Each business day HedgeCo.Net keeps you informed with the top hedge fund industry news, opinion and insight from around the globe. From the latest hedge fund launches, to the impact of regulation, competition, and investor activism - we track the topics and people that make a difference to you.
Business Day – Private equity firm Actis says equity funds have embraced investing in Africa because many governments have instituted market reforms which are creating opportunities for brave investors willing to take a long-term view on Africa.
“There is increased private equity interest in the continent, illustrated by numerous new (private equity) funds being raised for Africa," Peter Schmid, head of Actis Africa, said yesterday.
His firm recently led a consortium to acquire Alstom South Africa, a big electrical engineering, manufacturing, distribution and contracting business, for R5,16 bn.
Analysts say the lure of emerging markets in countries such as Russia, China and India, and now Africa, has grown stronger after the bruising credit crunch in the US and Europe.
Times Online – Woolworths’ biggest shareholder has thrown his weight behind management in rejecting Malcolm Walker’s £50m takeover approach, while refusing to deny that he is planning his own bid for the struggling retailer.
Iranian property tycoon Ardeshir Naghshineh, who has built up a 10.2% stake in the firm, told The Sunday Times: “Walker is well respected but the board rejected the bid and rightly so. It’s not a good deal for Woolies or shareholders.”
Walker, founder of the Iceland frozen-food chain, has proposed a deal that would see his consortium – backed by Icelandic retail investor Baugur, also a Woolworths shareholder – take its 815 stores but leave the parent company with a near-£100m pension deficit and most of its £120m debt.
“It doesn’t leave much,” said Naghshineh. “The opportunity goes if the deal happens . . . and the liabilities are left. What is the deal for the rest of the shareholders? What are they left with?”
Washington Post – State-controlled Korea Development Bank (KDB) proposed buying 25 percent of Lehman Brothers (LEH.N) for up to $5.3 billion, a newspaper reported, but other Korean banks rumored to be joining a KDB bid consortium denied they were involved.
Daily Chosun Ilbo also reported on Wednesday that top European bank HSBC Holdings (HSBA.L) (0005.HK), several U.S. hedge funds and an unidentified Chinese bank were among other potential buyers of Lehman, the fourth-ranked U.S. investment bank.
KDB had confirmed on Tuesday it was in talks with Lehman over a possible joint investment with other Korean banks, but declined to give details of its negotiations. On Wednesday, it said it was still unsure whether there would be a deal.
"Korea Development Bank has considered M&A deals in foreign investment banks including Lehman Brothers, and asset management companies, as part of its privatization and competitiveness efforts, but nothing has been decided yet," it said in a statement.
CNBC- Fortis NV. said it has sold its London-based hedge fund manager International Asset Management (IAM) to its management team, supported by third party investors, for an undisclosed sum.
The Belgian-Dutch bancassurer said the transaction will boost its solvency ratios, without specifying further, but will have no material impact on EPS.
The company was not immediately available for further comment.
IAM is one of the former units of ABN Amro Asset Management acquired by Fortis in the consortium takeover launched with RBS and Santander for the Dutch bank in 2007. On March 31, it had $4.3 billion of assets under management.
