DealBook: Super Return: The Big Buyout Questions

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Edited by Andrew Ross Sorkin

TODAY'S TOP HEADLINES | Wednesday, February 27, 2008 M & A: Pilots' Battles Play Havoc With Airline Mergers BANKING: Showdown Expected at UBS Shareholders Meeting PRIVATE EQUITY: G.M. Voices Confidence in Lending Business HEDGE FUNDS: Elliott Hits Cedar Hill With Espionage Suit OFFERINGS: I.B.M. Plans $15 Billion Share Buyback VENTURE CAPITAL: FusionOne Picks Up $6 Million from V.C.'s LEGAL: Genesco Deal Fight Escalates TOP STORY Super Return: The Big Buyout Questions As a founder and managing director of The Carlyle Group, David Rubenstein gets asked a lot of questions these days about the fate of the buyout business. On Wednesday at the Super Return conference in Munich, he addressed many of them -- and while his answers may not have been exactly what attendees wanted to hear, his tone was generally positive, despite the well-documented woes facing the industry. Here's a big question: When will buyouts get going again? Mark your calendars for 2011: Mr. Rubenstein said the industry could be back at peak levels within about three years. "It will come back, but not overnight," he said. Go to Item from DealBook» Also at Super Return: Leon Black of Apollo Management had some advice for the buyout crowd, and it involved distressed debt. Meanwhile, investment executives from the California Public Employees' Retirement System talked about their private equity strategy in an age of diminished expectations. * Leon Black on Doubling Down * The World According to Calpers Go to Full Coverage of Super Return 2008» Read More Add a comment ADVERTISEMENT Back to Top MERGERS & ACQUISITIONS Merger talks between Delta Air Lines and Northwest Airlines have been held up for a couple of weeks while pilots at each carrier discuss how to combine their union seniority lists. Go to Article from The New York Times» Read More Add a comment The Chinese aluminum giant Chinalco, which led a $14-billion investment in the global miner Rio Tinto, has not increased its Rio Tinto holding, despite an agreement with its U.S. partner that allows them to buy more, according to Reuters. Go to Article from Reuters via The International Herald Tribune»` Read More Add a comment Sirius Satellite Radio reported a narrower loss on Tuesday as it awaits regulatory action on its plans to combine with rival XM Satellite Radio Holdings. Go to Article from The Associated Press via The New York Times» Read More Add a comment Canada's takeover-friendly securities laws have helped make the country the easiest in the world for foreign acquirers, according to a new study that shows Canadians are the world's biggest net sellers of corporate assets in terms of the nation's market size. Go to Article from The Globe and Mail» Read More Add a comment Novell's acquisition of PlateSpin is its biggest bet yet on the server virtualization business and its largest transaction since 2003. Technology analyst firm The 451 Group examines this deal and its impact on Red Hat and other players in the virtualization landscape. Go to Report from The 451 Group» Read More Add a comment Sun Microsystems on Tuesday announced that it had completed its $1 billion acquisition of MySQL, the open-source database company, and is now on the prowl for similar prey. Go to Article from CNet News.com» Go to Article from The San Jose Mercury News» Read More Add a comment The Government of Singapore Investment Corporation bought the Westin Tokyo hotel from Morgan Stanley and Starwood Capital Group, as the U.S. investment bank shuffles its Japan portfolio. Go to Article from Bloomberg News» Go to Article from FinanceAsia» Read More Add a comment Gazprom, the world's largest natural gas producer, acquired control of a leading Russian coal company in an asset merger announced Tuesday that extends its sprawling business empire into electricity. Go to Article from The New York Times» Read More Add a comment Back to Top INVESTMENT BANKING UBS's woes are expected to be front and center at the bank's shareholder meeting Wednesday as investors take the firm to task over its first-ever annual loss and its expensive self-rescue plan. Go to Article from The International Herald Tribune» Go to Article from Bloomberg News» Read More Add a comment Goldman Sachs said on Wednesday that it has appointed J. Michael Evans and Michael S. Sherwood as vice chairmen of the firm effective immediately. Go to Article from Reuters» Read More Add a comment The credit crisis is tightening the screws on thousands of small to midsize banks across the United States, squeezing local builders and businesses that depend on those lenders for financing. Go to Article from The New York Times» Read More Add a comment ABN Amro, the Dutch bank bought by three European rivals last year, said Tuesday that it was closing any portfolio investment accounts held by customers with a United States passport within 30 days, citing "strategic reasons." Go to Article from The New York Times» Read More Add a comment Back to Top PRIVATE EQUITY Despite big losses at the auto and mortgage lender GMAC, General Motors is confident that its partner, the private equity firm Cerberus Capital Management, can fix the troubled financing business. Go to Article from The New York Times» Read More Add a comment Freescale Semiconductor's next chief executive, Richard Beyer, told Bloomberg News that the chip company is on "very solid ground," despite having debt that trades at distressed levels. Separately, Mr. Beyer's employment agreement shows he is getting ample perks in his new job. Go to Article from Bloomberg News» Go to Item from DealBook» Read More Add a comment Petroplus Holdings has inked a $2 billion deal with private equity firms the Blackstone Group and First Reserve to acquire crude oil refineries in the United States. Go to Article from Reuters» Read More Add a comment Back to Top HEDGE FUNDS Hedge fund Elliott Management sued Cedar Hill Capital Partners Tuesday, alleging its rival engaged in corporate espionage by misappropriating its proprietary software used for trading. Go to Article from Reuters via The New York Post» Go to Article from The Associated Press via Forbes» Read More Add a comment Och-Ziff Capital Management Group has tentatively begun buying troubled home loans, and the hedge fund firm will likely expand more aggressively in residential mortgage markets this year, its chief executive, Daniel Och, said on Tuesday. Go to Article from MarketWatch» Go to Article from The Wall Street Journal (Subscription Required)» Read More Add a comment Reddy Ice, the packaged ice maker whose $1.1 billion buyout collapsed in January, may be in for further turmoil as a group of investors, including Shamrock Activist Value Fund, has increased its stake in the company to 15.6 percent. Go to Article from The Deal.com» Go to Article from The Associated Press via Yahoo News» Read More Add a comment Back to Top I.P.O. / OFFERING I.B.M. said on Tuesday that its board had authorized a $15 billion share buyback program that could increase 2008 earnings by up to 5 cents a share, sending its stock up 4.2 percent. Go to Article from Reuters via The New York Times» Read More Add a comment China Railway Construction announced a larger-than-expected $5.4 billion initial public offering that would be the world's biggest so far this year, despite a cut in the number of shares to be listed in Shanghai amid market weakness. Go to Article from Reuters via The International Herald Tribune» Read More Add a comment Citadel Capital, the Egyptian buyout shop with $7 billion under management, is in talks with four international banks to help it sell shares to the public to raise funds for new energy, food and manufacturing ventures. Go to Article from Bloomberg News» Read More Add a comment Back to Top VENTURE CAPITAL FusionOne, which creates applications and services for mobile devices, has raised $6 million in a Series A-1 preferred stock round for its mobile content backup services. Go to Article from VentureBeat» Read More Add a comment Lucky Pai, a Shanghai-based home-shopping network that hawks jewelry and electronics to millions of Chinese households, is showcasing--itself. Go to Article from the Red Herring» Read More Add a comment Back to Top LEGAL The legal battle over the $700 million merger of shoe retailers Genesco and Finish Line is coming to a head. Go to Article from The Deal.com» Read More Add a comment Following the lead of Germany and Britain, at least eight other countries, including the United States, said Tuesday that they were investigating whether some of their citizens were using banks in Liechtenstein to evade taxes. Go to Article from The New York Times» Read More Add a comment The Financial Accounting Standards Board, which sets American accounting rules, will have two fewer members and the power of its chairman will be increased, the board's oversight body said on Tuesday. Go to Article from Reuters via The New York Times» Read More Add a comment Get home delivery of The New York Times for as low as $3.15 a week.

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