Fast Forward: June 1, 2012
Nearly 20 years ago I had the misfortune to occupy a residential apartment located on the floor above Pete Peterson’s administrative assistant. The building left much to be desired. Crack vials littered the stoop. Cockroaches ruled the night. And the paper thin walls and floors offered little in the way of privacy.
Pete’s secretary was the first neurotic New Yorker I had the pleasure of regularly sparring with. She took offense to any sort of nocturnal activity. Forget about loud music or even the 11 PM news-she would bang on her ceiling with a broom if I had the temerity to shuffle across the floor in slippers after dark.
Since then, the mere mention of Blackstone has since sent shivers down my spine. And it might soon do the same to investors around the world.
1 June 2012
The Blackstone Group
345 Park Avenue
New York, NY 10154
Ladies and Gentlemen:
I am, together with my general partners and funds managed by our firm, pleased to propose to acquire, for a purchase price of $15 in cash per unit, all of the outstanding common units, representing limited partners’ interests in Blackstone Group L.P. (the “Group"). Our offer to acquire the Chinese government’s minority stake in the Group has already been accepted. Our proposal provides a substantial premium for all of the Group’s common unit holders. If this offer is accepted, Blackstone Group will de-list from the New York Stock Exchange ("NYSE").
Conditions in our business have not been easy in the five years since we first issued securities on the NYSE. To many unit holders, who bought into the initial public offering and are now sitting on a large capital loss, that may seem like an understatement. Yet although we have made our share of mistakes, the substantial decline in the value of Blackstone’s securities is largely a result of factors beyond our control.
If you are a groupie of the “Group”, go read breakviews.com’s entire parody.
Inefficient Market: Blackstone Letter
breakingviews.com
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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 in securities mentioned
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