Goldman Goes Retail, Literally
In another demonstration of its appetite for private prop deals, Goldman Sachs took a controlling interest in German department store chain KarstadtQuelle for a cool $3.7 billion. The investment in the Essen-based KarstadtQuelle, which has 122 department stores and commands a 40 percent market share in Germany, was made through the Whitehall real estate fund. According to The Times, principal investments made up just $695 million in revenue in Q1, less than seven percent of total receipts.
GS Invests in German Store Chain [NY Times]
MS Tumbles in Deal Rankings
It looks like the mass exodus from 1221 Avenue of the Americas 1585 Broadway may be putting a dent in Morgan Stanley’s ability to get deals done. After finishing second in the M&A rankings last year, the white shoe bank has dropped to seventh place to date in 2006. CEO John Mack whines “No Fair!” in reference to the massive ATT/BellSouth deal that generated ginormous fees for just about everyone but Morgan.
MS Says Falling M&A Not a Trend [Bloomberg]
PU PO’d at Merrill Over Mutual Fund Naming
Speaking of Merrill, a friend passed along this clipping from the most recent issue of Princeton University’s alumni magazine:
When Merrill Lynch & Co. announced plans to rename its U.S. mutual funds as Princeton Portfolio Research & Management, University officials were not flattered. “The University was not consulted about Merrill Lynch’s intention to trade on the University’s reputation in renaming its family of funds,” said Cass Cliatt ‘96, a Princeton spokeswoman. “It’s a matter of concern, and we are addressing this with Merrill Lynch.”
The company issued a statement saying that the brand “was not named to suggest any association with the University,” but Clieatt termed the response “not sufficient.” The issue was defused, however, when Merrill Lynch traded its mutual-fund business for a stake in BlackRock, a major asset-management company. BlackRock said it would brand the funds under its own name.
ICBC Not So Horny for Goldman Sachs
In news that surely made the boys on Broad Street go limp, Industrial & Commercial Bank of China announced that Merrill Lynch, Credit Suisse and Deutsche Bank would get to split the spoils of the biggest underwriting in six years. The banks are expected to reap $300 million in fees when they float the $10 billion offering towards the end of the year. The news is considered a particular slap in the face given the fact that Goldman ponied up $2.58 billion last month for a 7 percent stake in ICBC. Ouch!
Goldman Sachs Misses $10bn Float [London Times]
