Why Blackstone Group LP May Have Further To Fall
Keuka Capital • 74 Comments
Keuka Capital • 74 Comments
Why Owning Blackstone Group LP Is A Risky Proposition
Keuka Capital • 107 Comments
Keuka Capital • 107 Comments
Wed, Jun. 8, 4:45 AM
- Blackstone (NYSE:BX) is in advanced discussions to acquire Acrisure, in a deal that could value the U.S. insurance brokerage at well over $2B, including debt.
- According to Reuters, Blackstone has so far prevailed in the auction for Acrisure, though negotiations with the company's owner, buyout firm Genstar Capital, are still continuing.
Thu, Jun. 2, 2:33 PM
- Concordia Healthcare (CXRX -14.2%) was up big earlier today on a rumor Blackstone (NYSE:BX) was near a deal to purchase. Now the WSJ is reporting both Blackstone and The Carlyle Group (NASDAQ:CG) did not submit final bids which were due on Tuesday, leaving Apollo Global (NYSE:APO) as potentially the last P-E suitor standing.
Wed, May 11, 2:47 AM
- The head of the Ultimate Fighting Championship, the world's largest mixed martial arts organization, has denied a report stating the group was exploring a sale.
- "The ESPN story is overblown," said UFC president Dana White, adding that the facts "could not be further off."
- ESPN reporter Darrell Rovell previously said that interested bidders included Blackstone (NYSE:BX), WME/IMG, China Media Capital and the Dalian Wanda Group, and a winning bid was expected to be between $3.5B-$4B.
Thu, Apr. 21, 1:34 PM
- Concordia Healthcare (NASDAQ:CXRX) halted after shares spiked more than 10%.
- Resumes at 1:35:35.
- There is chatter that Blackstone (NYSE:BX) is considering a bid for CXRX.
- Update: Shares have resumed trading and are +19% to $29.00.
- Update: In a statement, the company announces that it has formed a special committee of board members to explore strategic alternatives.
- Now read Thoughts On Concordia Healthcare 2015Q4 Earnings »
Mon, Apr. 18, 11:56 AM
- Glass and metal packaging company Ardagh is the lead bidder for assets that Ball (BLL +2.3%) and Rexam (OTCPK:REXFF) are selling as part of their merger, potentially fetching ~$4B, Bloomberg reports.
- Apollo Global Management (NYSE:APO), Blackstone (NYSE:BX) and Madison Dearborn Partners also are among bidders for the assets, according to the report.
- In January, the EU approved BLL’s £4.4B ($6.3B) takeover of Rexam, creating the biggest maker of food and beverage cans, after agreeing to sell 12 plants on the continent to eliminate antitrust concerns.
- Now read Ball upgraded at J.P. Morgan; Rexam risk/reward seen as more favorable
Mon, Apr. 4, 3:19 AM
- After shooting down a rumor stating it was looking into Brazilian shopping mall operator BR Malls Participacoes, Blackstone (NYSE:BX) is setting its sights on India.
- The U.S. asset manager is paying up to $1.1B to buy MphasiS from Hewlett Packard Enterprise (NYSE:HPE), underscoring a bullish outlook on the Indian IT outsourcing business.
- In December, Blackstone purchased a minority stake in India's IBS Software for $170M.
Thu, Mar. 17, 12:16 PM
- Reuters reports Blackstone (NYSE:BX) is close to acquiring HP Enterprise's (NYSE:HPE) 60.5% stake in Indian IT outsourcing services firm MphasiS, and that a deal could be inked by early April. Terms are unknown - HPE's stake was worth ~$940M based on MphasiS' Thursday close in Mumbai.
- MphasiS stated in last year's annual report it received 24% of its revenue from services provided to HPE's clients. By selling its stake, HPE would shore up a balance sheet featuring $8.5B in cash and $16.1B in debt at the end of the company's January quarter.
Sun, Mar. 13, 5:10 AM
- China's Anbang Insurance Group has agreed to acquire Strategic Hotels & Resorts (NYSE:BEE) for around $6.5B, as the owner of New York's iconic Waldorf Astoria further expands its U.S. hotel portfolio, Reuters reports.
- The deal comes just three months after Strategic Hotels' current owner, private equity firm Blackstone Group (NYSE:BX), took the U.S. luxury-resort company private for around $6B.
- Strategic Hotels' properties include the Four Seasons Washington, D.C., the Westin St. Francis in San Francisco and the beach-front Ritz-Carlton Laguna Niguel in Orange County, California.
Tue, Mar. 8, 7:46 AM
- Vivint Solar (NYSE:VSLR) says it is terminating its merger agreement with SunEdison (NYSE:SUNE) after the latter failed to consummate the deal.
- VSLR says it will "seek all legal remedies available" as a result of the "willful breach" of the merger agreement by SUNE.
- SUNE had agreed to buy VSLR, which is controlled by Blackstone Group (NYSE:BX), on July 20 in a cash-and-stock deal valued at ~$2.2B; As part of the deal, SUNE yieldco TerraForm Power (NASDAQ:TERP) had agreed to buy VSLR's rooftop solar portfolio for $799M.
- SUNE +40.5%, VSLR -1.9%, TERP +12.5% premarket.
Thu, Mar. 3, 6:18 PM
- P-E firms Blackstone (NYSE:BX) and Onex are teaming up to bid for Philips' (NYSE:PHG) lighting unit, which could be worth €4.5B-€5B, WSJ reports.
- Apollo Global (NYSE:APO) and U.K.'s Melrose Industries also are competing for the unit, according to the report.
- The lighting unit, which includes PHG's traditional lamps operation as well as a business that makes lamps with energy-efficient LEDs, had €7.4B in sales last year.
Mon, Jan. 11, 4:12 PM
- Blackstone (NYSE:BX) could have interest in entering the nontraded REIT business, says FBR's Daniel Altscher, and buying NorthStar Asset Management (NYSE:NSAM) could be a way in.
- As for Apollo Global (NYSE:APO), Altscher reminds it tried, but failed to buy AR Capital last year.
- Other possible suitors include traditional asset managers, brokers, sovereign wealth funds, PE funds, and insurance companies.
- NorthStar's "stable income stream" could be used to support a far higher debt level, says Altscher, and the sale price could end up being at a meaningful premium to the current level. The stock gained 11% today, but is off more than 40% Y/Y.
- As for NorthStar Realty Finance (NYSE:NRF) and NorthStar Realty Europe (NYSE:NRE), a sale of either is unlikely, says Altscher.
- Previously: Strategic alternatives at NorthStar Asset Management; stock up 3.3% (Jan. 11)
Dec. 8, 2015, 7:03 PM
- Blackstone (NYSE:BX) is buying 32 multi-family properties from Greystar Real Estate Partners for $2B. The buildings contain 10,399 units, and are in California, Florida, New York, Washington, and other states. Greystar will continue overseeing the properties.
- Following the deal, Blackstone will own 57K apartment units altogether. The P-E firm has been on an apartment-buying spree, as it looks to profit from growing rents amid declining homeownership rates. In October, Blackstone inked a $5.3B deal to buy Manhattan's 11.2K-unit Stuyvesant Town-Peter Cooper Village complex.
Nov. 23, 2015, 7:53 AM
- General Electric (NYSE:GE) has agreed to sell its $5.9B portfolio of U.K. home loans to an investment consortium led by Blackstone (NYSE:BX), TPG Special Situations Partners and CarVal Investors.
- The transaction represents the sale of almost all of GE's remaining U.K. mortgage business, and marks another step to sell most of the company's finance assets.
- When completed, the deal will contribute about $0.4B of capital to the overall target of approximately $35B of dividends expected to be paid to GE shareholders (subject to regulatory approval).
Nov. 16, 2015, 8:02 AM
- Facility management group GCA Services provides janitors and cleaners to schools, airports, warehouses, power stations, rental car locations, and the like. The private equity arm of Goldman Sachs (NYSE:GS) and Thomas H. Lee will have an equal stake in a group buying GCA from Blackstone (NYSE:BX) for about $1B, reports Reuters.
- GCA gets most of its business from the education sector and could benefit as more school districts outsource facility management (currently less than 20% is outsourced).
- Blackstone acquired GCA from another P-E firm in 2012 for about $600M.
Oct. 28, 2015, 7:55 PM
- With IBM taking on the digital and data assets of The Weather Company, what happens to The Weather Channel that it's leaving behind?
- It's struggling, but it will pursue storm coverage as a "hyper-local streaming service," according to channel CEO Dave Shull. "We are continuing to invest in our strategic partnerships with our distributors, advertisers, and emerging technology start-ups."
- The network will continue as its own company -- still owned in part by NBCUniversal (CMCSA +0.7%) along with Bain Capital and Blackstone (BX +1.2%) -- and has a long-term deal to use the services it sold to IBM. It's also still one of the most distributed channels on pay TV; Shull says more than half of America tunes in at least once a week.
- Comcast's recent earnings filing shows its investment in the channel has been marked down to $81M after a $252M impairment charge.
- Previously: IBM confirms Weather Co. deal, touts cloud/analytics synergies; shares rise (updated) (Oct. 28 2015)
- Previously: WSJ: IBM near $2B-plus deal for The Weather Company assets (Oct. 27 2015)
Oct. 27, 2015, 8:28 PM
- IBM is nearing a deal in excess of $2B to acquire the digital and data assets of The Weather Co., owner of the Weather Channel, The Wall Street Journal is reporting.
- The company -- owned in part by NBCUniversal (NASDAQ:CMCSA) along with Bain Capital and Blackstone (NYSE:BX) -- started hiring banks to seek a buyer in August for a deal it hoped would hit $3B. The company's digital bits were widely considered to be the most valuable.
- IBM has a particular interest in the company's forecasting group, WSI, the WSJ says -- a unit that's chock full of tech and weather data that the Weather Co. licenses to various businesses.
- The deal would reportedly come with Weather Co. CEO David Kenny, who would join IBM.
- A $2B deal would be a discount over the company's 2008 sale price, valued at $3.5B. IBM shares fell 4.1% today.
- Previously: IBM eyes digital assets of The Weather Company (Oct. 19 2015)
- Previously: Weather Channel hires banks to explore sale for up to $3B (Aug. 20 2015)
Blackstone Group LP is a global manager of private capital and provides financial advisory services. Its alternative asset management businesses include the management of corporate private equity funds, real estate funds, funds of hedge funds, credit-oriented funds, collateralized loan... More
Industry: Asset Management
Country: United States
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