Sunday, March 9, 2014
- The sale of JP Morgan's (JPM) private-equity business has stalled, Reuters reports, adding that a possible reason is that the bank increased its asking price by too much.
- JPMorgan put One Equity Partners on the market in November; it's portfolio is valued at over $4B.
- Meanwhile, whistleblower Keith Edwards will receive $63.9M for information he provided that led to the bank paying a fine of $614M to settle charges that it defrauded the government into insuring flawed home loans.
- A judge has ruled that a conflict of interests caused bankers at RBC Capital Markets to persuade Rural/Metro Corp. to accept a low offer of $438M from Warburg Pincus when the latter bought the national ambulance service in 2011.
- Judge Travis Laster found that the Royal Bank of Canada (RY) division misled Rural/Metro directors about the valuation of the company in order for the sale to be completed quickly. RBS also failed to disclose that it was looking to help Warburg finance the acquisition.
- Laster agreed with Rural/Metro's former investors that they should have received more money, although he has yet to decide how much RBC should pay in compensation. The ex-shareholders want $172M.