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Showing posts with label Blackstone. Show all posts
Showing posts with label Blackstone. Show all posts
Wednesday, August 8, 2012
Investopedia: Knight Capital Lives To Fight Another Day
For those who favor quick and brutal justice for market misdeeds, the travails of Knight Capital Group (NYSE:KCG)
ought to offer some measure of satisfaction. While Knight's technology
problem led to only about an hour of chaos in about 140 stocks, the
costs to the company have been swift and severe. While Knight has
secured a capital injection that will keep it in the game, the long-term
viability of this business is still uncertain at best.
Please follow the link for more:
http://stocks.investopedia.
Please follow the link for more:
http://stocks.investopedia.
Thursday, December 16, 2010
Icahn Bags Dynegy ... Maybe
For a company that has not strung together consecutive years of positive free cash flow in over a decade, Dynegy (NYSE:DYN) is a surprisingly hot commodity. Having rebuffed two bids from Blackstone (NYSE:BX), this independent power producer now has a bid in hand from Carl Icahn's Icahn Enterprises LP (NYSE:IEP).
The Deal In Hand
Icahn Enterprises is offering $5.50 per share in cash for Dynegy ($660 million), and will take on Dynegy's nearly $4 billion in debt as well. Curiously enough, the buyer agreed to allow Dynegy to seek out yet another better bid, giving the company until late January to find a better offer. Shareholders already seem to be counting on the idea that someone will make a competing bid, as the shares are currently trading a bit higher than that $5.50 deal price.
Icahn Enterprises is offering $5.50 per share in cash for Dynegy ($660 million), and will take on Dynegy's nearly $4 billion in debt as well. Curiously enough, the buyer agreed to allow Dynegy to seek out yet another better bid, giving the company until late January to find a better offer. Shareholders already seem to be counting on the idea that someone will make a competing bid, as the shares are currently trading a bit higher than that $5.50 deal price.
Ultimately, then, it seems like justification for Dynegy's refusal to close the deal with Blackstone. To be fair, it was not Dynegy's management or board that had the problem; they signed off on the deal. Rather, it was major shareholders of Dynegy, including Seneca Partners and Icahn, that balked at the price. While Blackstone did up its $4.50 bid to $5.00 in November, that still was not enough, and the transaction ultimately fell apart as Blackstone walked away.
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Tuesday, August 17, 2010
Dynegy Finally Takes A Bid
This was not how the Dynegy (NYSE:DYN) story was supposed to end. One of the veterans of the independent power producer concept, Dynegy was supposed to have been able to leverage cheap coal-burning plants against higher electricity prices and produce streams of cash flow for shareholders. As with Reliant (NYSE:RRI), Mirant (NYSE:MIR), Calpine (NYSE:CPN) and NRG Energy (NYSE:NRG), the Dynegy story just never worked out according to plan.
Hamstrung by low natural gas prices, sluggish power prices and a lot of debt that came from seemingly ill-advised expansion, Dynegy has struggled to make a go of it. Instead of continuing the struggle, Dynegy decided to sell out to private equity giant Blackstone (NYSE:BX) for a total consideration of roughly $4.7 billion. Shareholders will get $4.50 of cash for each share if the deal goes through.
For the full article:
http://stocks.investopedia.
Hamstrung by low natural gas prices, sluggish power prices and a lot of debt that came from seemingly ill-advised expansion, Dynegy has struggled to make a go of it. Instead of continuing the struggle, Dynegy decided to sell out to private equity giant Blackstone (NYSE:BX) for a total consideration of roughly $4.7 billion. Shareholders will get $4.50 of cash for each share if the deal goes through.
For the full article:
http://stocks.investopedia.
Monday, July 19, 2010
Bye Bye NBTY
Even the wildest rollercoaster rides come to an end, and nutritional supplement maker NBTY's (NYSE:NTY) ride is at an end. Before the open Thursday, NTY announced that the company had accepted a $3.5 billion all-cash buyout offer from private equity giant Carlyle Group.
If you have never paid much attention to NBTY before, pull up a long term chart and count the number of 50% retracements over the past 20 years - I think I counted seven. I have followed this stock for at least 15 of those years, and owned it once along the way. Throughout that run, I was always surprised that the company could never carve out a steady and stable growth trajectory.
To read the full piece, please go to:
http://stocks.investopedia.
If you have never paid much attention to NBTY before, pull up a long term chart and count the number of 50% retracements over the past 20 years - I think I counted seven. I have followed this stock for at least 15 of those years, and owned it once along the way. Throughout that run, I was always surprised that the company could never carve out a steady and stable growth trajectory.
To read the full piece, please go to:
http://stocks.investopedia.
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