Ackman Unveils Revised Proposal for Target Corp
Media star and part-time hedge fund manager Bill Ackman of Pershing Square Capital Management is back at today, hosting an 11AM teleconference and webcast to unlock value at Target Corp (TGT-NYSE).
The revised transaction addresses each of the concerns raised by the Company in response to Pershing Square's October 29th presentation, and incorporates feedback from shareholders, bondholders, and other market participants. Pershing Square believes that the revised transaction will build long-term value for Target and all of its stakeholders. A live audio broadcast of the presentation will also be available by teleconference. The call can be accessed in the United States by dialing 1-888-674-0219 (internationally by dialing 201-604-0489), with the participant access code of "Pershing Square"
Check out the online presentation here.
With the stock printing 52-week lows going into the meeting, perhaps a prayer is in order. Analysts continue to lower numbers across the board, and eulogies for the American consumer are being read from coast to coast. America was "overstored", and while that is being corrected, until capacity disappears it is going to be rough sledding for the longer term survivors.
SEC Nails Cuban in PIPE Deal
Mark Cuban's dalliance with Mamma.com was bound to end badly. Getting mixed up with Canadian stock promoters is probably questionable to begin with, but trading on material, non-public information is a no-no.
The laws regarding PIPE transactions are clear, and Cuban should have known that the SEC was cracking down on abuses relating to Private Investments in Public Equity.
On June 28th of 2004 the CEO of Mamma.com contacted Cuban, prefacing the communication by stating that he had confidential information to convey. Cuban consented, and in effect went "over the wall" and was restricted from further transactions in the stock, according to securities laws.
After speaking with the Mamma.com CEO over the details of the transaction Cuban allegedly commented "Well, now I'm screwed. I can't sell"
But sell he did, over the next few days.
Dumb Dutch Bankers panickING
Beating up on bankers is a bit too popular of late, but some bankers deserve to be singled out for recognition.
ING has come along way in 17 years; not long ago it was the “Postal Bank” of the Netherlands, but mergers over the years built it up into a formidable organization with a management team that was clearly not up to the task of managing the beast they had created.
Only last Friday they insisted they had no need for new capital, but they were either lying or clueless...take your pick.
The Dutch government is bailing the Dutch bankers out to the tune of $13.4 billion...which will barely restore their capital ratios to acceptable minimum levels. Apparently they just figured out there was a storm brewing:
The announcement came after top bank executives spent the weekend in urgent talks with government and central bank officials concerned about the prospect that ING might collapse when trading opened on Monday. Shares of ING fell more than 27 percent on Friday in Amsterdam after the company said it expected to post a third-quarter loss of 500 million euros as a result of 1.6 billion euros in write-downs....CEO Michel Tilmant commented “market conditions have changed dramatically in recent weeks and have led to an internationally recognized belief that going forward, in this market environment, capital requirements for financial institutions should be higher.” NYT
ING’s prowess, or lack thereof, in stock picking has long been on display at their in-house asset management operations. But they were not content to merely lose money for the clients, and apparently took a flyer in their capital account as well…
The bank has also been hurt by its exposure to the extremes of the stock market, he said, as ING had 3.5 billion euros of unhedged equity exposure in its equity investment portfolio at the end of June.
Unhedged...aka Long and Wrong. That might have cost them $2 billion over the past 4 months.
Have fun at the marathon, it will probably rain.
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The Netherlands to Provide $13 Billion to the ING Group
New York Times
ING Gets $13.4 Billion Injection From the Netherlands
Bloomberg
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The content contained represent the opinions of 1440 Wall Street. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author. No Position
Neuberger Auction: Jeff Lane, Carlyle Want To Keep It Real
Dick Fuld’s inability to monetize part or fall of Lehman Brothers Neuberger & Berman asset management operation contributed to his downfall. Of course, getting a bunch or irate money managers on the same page after they watched their parents stock implode was probably not too easy, and the employees no doubt demanded huge retention packages to stick around.
It was a clusterfuck pure and simple, and now Neuberger probably only managers half the assets they did 6 months ago, if not less.
I had originally pegged the value of the subsidiary at $5 billion while analysts spoke of a number closer to $8 billion.
The eventual deal to sell the company after Lehman imploded was far more modest-Bain Capital and Hellman & Friedman announced they would purchase the venerable operation for $2.15 billion a few weeks ago.
But ex-Neuberger honcho Jeff Lane, who put in a brief stint as the head of Bear Stearns Asset Managment after Jimmy Cayne booted Richard Marin, is now trying to put in a competing bid, although it is unclear if this is on behalf of his new employer, Modern Bank.
Private-equity firm Carlyle Group has teamed up with former Neuberger Berman chief executive officer Jeffrey Lane to make a rival bid for Neuberger, the crown jewel of Lehman Brothers Holdings Inc.’s asset-management unit.
Late last month, Bain Capital LLC and Hellman & Friedman LLC’s announced an acquisition of Neuberger and other Lehman money-management assets for $2.15 billion. The price paid by Bain and Hellman—about half the firms’ initial bids—was a steep discount to the amount Neuberger would have sold for prior to Lehman’s collapse......The private-equity firm argues that the actual price is closer to $1.55 billion due to provisions and adjustments in the sale agreement. It demands a “real auction” for the assets. A federal bankruptcy court will hold a hearing Thursday on the matter. Judge James Peck, which has yet to approve Bain and Hellman’s acquisition, will also hear objections to the deal from the official creditors committee and unofficial bondholders group.
Never underestimate the ability of Wall Street bigwigs to mess up a seemingly healthy operation. Maybe Lane can salvage something, and perhaps a chairman emeritus role can be found for 105 year-old Roy Neuberger.
God only knows what he thinks about all of this.
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Jeffrey Lane
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Carlyle, Lane to Launch Bid for Neuberger
WSJ
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The content contained in this blog represents the opinions of 1440 Wall Street. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author. No Position
