Blackstone Waits Out Credit Crunch
Originally Published In the News March 10, 2008 8:15 AM
Blackstone’s slide continues. They are pretty much writing off 2008:
Blackstone Group LP, manager of the world’s largest buyout fund, said fourth-quarter profit plunged 89 percent after a ``meltdown’’ in the credit markets and warned that getting loans for takeovers will be hard in 2008.
Profit excluding costs tied to its June initial public offering declined to $88 million, or 8 cents a share, from $808.1 million, or 72 cents, a year earlier, the New York-based company said today in a statement. Blackstone fell as much as 5.2 percent in New York trading as earnings missed analysts’ estimates.
``Credit market problems persist and if anything have gotten worse,’’ Blackstone President Tony James said on a conference call with reporters today. ``We’re looking to 2009 before we see much of an improvement.’’
The only thing the might concern short sellers is Schwarzman taking his company private. Perhaps they can talk the stock down and do a deal later this year. While this scenario was discussed when Blackstone went public, nobody expected it to unfold so quickly.
Blackstone Profit Falls 89% on Credit Market Meltdown
Bloomberg
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