M&A Diary: Merger offers continue, but at smaller rate

01 04 2008

M&A Diary: Merger offers continue, but at smaller rate

Posted by: in Private Industry News

Filed under: Deals, The Blackstone Group, Rumors, Private equity industry, Investments, Activist investing

This morning we have several pieces that are key for buyout and private equity investors alike. Deals are continuing as you’ll see below, but they’re not as traditional in public to public deals, and private equity deals will be looking different than 2007 (duh!). Here’s a digest of some of the deals:

Nationwide Financial Services, Inc. (NYSE: NFS) has received a buyout offer from its parent company, which already controls the company via a Class B share ownership. This will end up being a mutual insurance company again rather than a stock insurance company. At least that’s the case if it agrees to be purchased.

Iomega Corporation (NYSE: IOM) received a buyout offer from EMC Corp. (NYSE: EMC) that would be for $3.25, although the board has snubbed the offer. If you look at the history you’ll comprehend why.

The Blackstone Group, L.P. (NYSE: BX) posted earnings this morning that were under estimates and actually were a net loss after charges. You’ll want to see the comments from Steve Schwarzman, because this will show you the tone for 2008 in private equity land. At least they’ve a good dividend now…..

A complicated-sounding deal came this morning, that is really in essence not complicated. White Mountains Insurance Group, Ltd. (NYSE: WTM) is essentially buying back a 16% stake held by none other than Warren Buffett’s Berkshire Hathaway (NYSE: BRK-A).

The rumors or speculation surrounding Sprint Nextel Corp. (NYSE: S) are continuing, yet it is having almost no net impact on the stock. Speculators have been noting Carlos Trim of Mexico might want to bundle this one or that even Deutsche Telecom (NYSE: DT) may want to bundle it up either in a buyout or in a strategic investment of sorts.