DealBook: Rich and Media-Shy, Abu Dhabi Fund Draws Scrutiny

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Edited by Andrew Ross Sorkin

TODAY'S TOP HEADLINES | Thursday, February 28, 2008 M & A: Nextel Write-Down Pushes Sprint to Big Loss BANKING: ABN Amro Posts $2.36 Billion Write-Down PRIVATE EQUITY: The Private Equity Lawsuit of the Year HEDGE FUNDS: Simons' $60 Million Gift to Stony Brook OFFERINGS: China Railway Raises $3.1 Billion in Shanghai I.P.O. VENTURE CAPITAL: LinkedIn's Newest Member: Bill Gates LEGAL: Top F.T.C. Official Expected to Resign TOP STORY Rich and Media-Shy, Abu Dhabi Fund Draws Scrutiny After decades in the shadows, the Abu Dhabi Investment Authority is turning heads on Wall Street and in Washington by making high-profile investments in the United States and elsewhere. ADIA is the largest of the world's sovereign wealth funds, giant pools of money controlled by cash-rich governments, particularly in Asia and Middle East. But Abu Dhabi, the wealthiest of the seven Arab emirates, says little about its fund, which recently formed a small team that is now buying big stakes in Western companies such as Citigroup. Few outsiders know for sure where ADIA invests -- or even how much money it controls. But ADIA's secrecy is drawing increased scrutiny. Go to Article from The New York Times» Highlights from Wednesday's coverage of the Super Return conference in Munich: David Bonderman of TPG forecast a 40 percent drop in private equity deal volume this year, but said the buyout industry continues to outperform the public markets. Go to Item from DealBook» If shell-shocked banks can't or won't provide loans for buyouts, just steer around them -- that's one strategy that seems to be gaining traction at the biggest private equity firms. Go to Item from DealBook» You've heard of the wisdom of crowds: Here's the wisdom of the private equity crowd, in the form of a snap poll conducted among attendees at Super Return. Go to Item from DealBook» Read More Add a comment ADVERTISEMENT Back to Top MERGERS & ACQUISITIONS Sprint Nextel reported a huge fourth-quarter loss Thursday as it wrote down $29.7 billion in goodwill stemming from its 2005 purchase of Nextel Communications. The wireless carrier also said it was indefinitely suspending its dividend, citing a need for "greater financial flexibility" amid "deteriorating business conditions." Go to Article from The Associated Press via The New York Times» Go to News Release from Sprint» Read More Add a comment A dispute over marketing rights held by mining group Xstrata's biggest shareholder is threatening a possible takeover by Brazil's Companhia Vale do Rio Doce worth around $90 billion, Reuters reported citing an unnamed source. Go to Article from Reuters via The New York Times» Read More Add a comment Microsoft's $44.6 billion offer to buy the Internet company Yahoo is not an aberration but part of a broader trend in which suitors make bold unsolicited bids during a time of weak stock prices and tight credit markets. Go to Article from Reuters via The International Herald Tribune» Read More Add a comment Take-Two Interactive's rapid response to Sunday's hostile bid makes Yahoo look almost calm. That may be because Take-Two found some serious gaps in its takeover defenses, The Deal Professor writes. Go to Item from The Deal Professor» Read More Add a comment Yahoo is facing seven shareholder lawsuits alleging the slumping Internet pioneer bungled its response to Microsoft's unsolicited takeover bid. Go to Article from The Associated Press via The New York Times» Read More Add a comment Electronic Arts's chief financial officer suggested Wednesday that the video game publisher is prepared to launch a hostile bid for Take-Two Interactive after its previous approach was rejected. Go to Article from The Deal.com» Go to Article from The New York Post» Read More Add a comment Oracle announced Wednesday it has received a green light from regulators to move forward on its merger plans with BEA Systems. Go to Article from CNet News.com» Read More Add a comment I.B.M. spent $5 billion last November to acquire Cognos to expand its so-called information-on-demand strategy. The 451 Group looks at what has happened since the transaction closed in late January. Go to Report from The 451 Group» Read More Add a comment Consumer products maker Newell Rubbermaid said Wednesday it has agreed to buy an Illinois maker of touch-free washroom dispensers and other devices for $445 million, its second acquisition announced this week. Go to Article from The Associated Press via The Chicago Tribune» Read More Add a comment CollaGenex Pharmaceuticals said Wednesday that it would be bought for about $420 million by Galderma Laboratories. Go to Article from The Philadelphia Inquirer» Read More Add a comment Back to Top INVESTMENT BANKING Dutch bank ABN Amro said on Thursday it had made a 1.56 billion euro ($2.36 billion) writedown in its global markets business in its last results before being split between three buyers. Go to Article from Reuters via The New York Times» Read More Add a comment Managers of the troubled Swiss bank UBS won shareholder backing Wednesday for a plan to raise capital, but only after facing fierce criticism over the huge write-downs on subprime investments that led to the bank's first annual loss. Go to Article from The New York Times» Read More Add a comment Christopher Varelas, Citigroup's co-global head of technology, media and telecommunications investment banking is planning on leaving to join fledgling private equity firm Bigwood Capital, The Wall Street Journal reported Thursday. Go to Article from The Wall Street Journal (Subscription Required)» Read More Add a comment Deutsche Bank's chief executive says that he expects further writedowns at other banks as they continue to calculate unrealized losses from assets tied to risky mortgages and loans made to finance private equity deals. Go to Article from Bloomberg News» Read More Add a comment European Union regulators on Wednesday said they would investigate whether bailouts of two German banks hit by the subprime lending crisis had violated rules on state aid for ailing enterprises. Go to Article from The New York Times» Read More Add a comment Back to Top PRIVATE EQUITY The question that Clear Channel Communications and Providence Equity Partners are raising in their court battle is nothing less than this: Is the current structure of private equity deals workable under Delaware law? Go to Item from The Deal Professor» Read More Add a comment Cerberus Capital Management is among the firms in talks with banks and regulators about potentially investing in bond insurer Ambac Financial Group, according to Reuters. Go to Article from Reuters» Go to Article from The Associated Press via CNN Money» Go to Related Article from The Associated Press via CNN Money» Read More Add a comment The announcement Wednesday that Cairo-based private equity firm Citadel Capital is preparing to go public had Breakingviews wondering if an even-bigger private equity shop looking for a regional presnence might swoop in and pre-empt an I.P.O. Go to Article from Breakingviews» Read More Add a comment Back to Top HEDGE FUNDS James H. Simons, a mathematician and one of the world's most successful -- and wealthy -- hedge fund managers, has become Stony Brook University's largest benefactor with a $60 million donation, the largest gift to a public university in New York. Go to Article from The New York Times» Read More Add a comment Investors cooled towards new hedge funds last year, with cash put into European launches falling for the first time since the 2001 bear market. Go to Article from The Financial Times» Read More Add a comment Jewelry retailer Zale, which has searched in vain for a winning formula even in better economic times, announced Wednesday that it would close more stores and cut 20 percent of its headquarters staff to save more than $65 million a year. Go to Article from The Boston Globe» Go to Article from The Dallas Morning News» Read More Add a comment Back to Top I.P.O. / OFFERING China Railway Construction, which built part of the controversial train line to Tibet, said Thursday it raised 22.25 billion yuan ($3.1 billion) from a domestic initial public offering. Go to Article from Agence France Presse» Read More Add a comment A lot of people have talked about selling stock in bands as a means to help finance promising musicians. In Britain, a company called Slicethepie.com is enabling fans to trade shares of music acts the way they would a publicly traded company. Go to Article from CNet News.com» Go to Article from Reuters» Read More Add a comment Back to Top VENTURE CAPITAL Bill Gates, Microsoft's chairman, is helping out LinkedIn's online professional network by setting up a profile on the service and posing a question to help draw more attention to a makeover of the Web site's front page. Go to Article from The Associated Press via The New York Times» Read More Add a comment Proofpoint, a company that provides e-mail and data security to large corporate and government customers, announced Wednesday that it has closed a new $28 million round of financing to accelerate its global expansion. Go to Article from The San Jose Mercury News» Read More Add a comment Yelp, the business reviews site that has gained a loyal following of opinionated young urbanites, as well as a couple of haters, announced on Wednesday that it has raked in a fresh $15 million in venture dough. Go to Article from CNEt News.com» Read More Add a comment Back to Top LEGAL The chairwoman of the Federal Trade Commission, Deborah Platt Majoras, is expected to resign her post next month to take a senior position at Procter & Gamble, according to press reports. Go to Article from TheDeal.com» Go to Article from The New York Times» Read More Add a comment A former executive at UBS who sold nonpublic information about the bank's stock recommendations and a former trader who used those tips pleaded guilty Wednesday to charges of insider trading. Go to Article from Reuters via The New York Times» Read More Add a comment State-owned sovereign wealth funds, armed with billions of dollars, are welcome to invest in the European Union, but they should be more open about their motives and methods, the bloc's executive body said Wednesday. Go to Article from Reuters via The International Herald Tribune» Read More Add a comment Get home delivery of The New York Times for as low as $3.15 a week.

SEARCH DEALBOOK SITE DealBook | E-mail Preferences Help | Advertising Opportunities Live From Super Return 2008 Some of the biggest names in private equity gathered in Munich to share strategies for weathering the industry's recent downturn. More» Mergers in a Time of Bears A new study found that deals are most likely to succeed in rough markets -- like the one we are in now. More» Revolving Door The latest hires, promotions and departures at Vanguard, Morgan Stanley, Citigroup and more. More» DealBook Talks Yahoo DealBook's Andrew Ross Sorkin discussed Microsoft's offer for the Internet giant on "Charlie Rose." Watch here. More» Microsoft's Yahoo Bid Full coverage of Microsoft's unsolicited $44.6 billion offer for Yahoo, what it means and how it might play out. More» DealBook for BlackBerry For readers who are BlackBerry addicts, we now offer DealBook for BlackBerry. With one-click access to DealBook -- formatted for your device -- it's easy to check the latest deal news throughout the day. You can install the DealBook shortcut by visiting mobile.nytimes.com/bbinstall directly from your BlackBerry or by sending the text message "bb install" to 698698. More information on DealBook for BlackBerry. The Deal Professor A blog-within-a-blog that looks at mergers, private equity and corporate governance through a legal lens, written by Steven M. Davidoff, a professor at Wayne State University Law School and a former lawyer at Shearman & Sterling. More» News By Industry Airlines / Autos Basic Industries Consumer Goods Energy / Utilities Financial Services Food & Beverage Healthcare Media Real Estate Retail / Leisure Technology Telecom Tools & Resources GET QUOTES Look Up Symbol RESEARCH SUITE Portfolio Company Research U.S. Markets International Markets Mutual Funds SEND A TIP OR FEEDBACK E-mail us at dealbook@nytimes.com Dealboard

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