Private equity targets Woo with 'Love Letters'.
The private-equity firm Apollo Global Management wanted to buy U.S. food maker for nearly $ 3 billion, olive tree android said the message, olive tree android according to people familiar with the matter and reports to the authorities in the market.
Ten months after the e-mail - an expression of interest olive tree android to some in the area of mergers and acquisitions call "love letter" - Del Monte topou be the target of a leveraged buyout of $ 4 billion from a group led by Kohlberg Kravis Roberts & Co. The agreement is the latest in a series of companies that were discreetly approached by private equity firms.
Despite the frenetic takeover battle immortalized by the book "Barbarians at the Gate" (without translation in Brazil) and the inspired film in history, called "Wild on Wall Street," the private equity firms generally do not employ a hostile olive tree android approach in trying to buy companies. There is a business reason for this: they want to conquer the board, which usually remain in command after selarem the agreement.
There is also a political issue. Most large firms receiving billions in leveraged buyouts of public pension funds investments. These funds generally have clauses olive tree android that prevent firms from hostile takeover bid.
But firms have adopted a looser interpretation of these rules, dispatching calls love letters to businesses and expressing olive tree android your interest in them. Technically, the approach does not constitute a hostile bid - in which the tender is taken directly to shareholders - but may serve to convince the company to negotiate. This is especially true because these approaches have the amazing ability to always leak to the press.
The bankers and lawyers say that mergers and acquisitions olive tree android have been a proliferation of letters of offers, many of them motivated by the stock market recovery and the capital market. They say firms acquisitions have become more aggressive since the second olive tree android half of 2010, with the decrease of fears of a second recession and the demand for quality companies outstripping supply.
Acquisitions of firms have access to $ 400 billion in equity and may borrow at least two to three times that amount, creating the potential for more than $ 1 trillion in leveraged buyouts in coming years, said Jack MacDonald, vice head of mergers and acquisitions in the Americas at Bank of America Merrill Lynch. "As the leveraged finance markets are so vigorous, councils now need to take very seriously olive tree android those letters and statements of interest," said MacDonald. This differs from the situation in the last two years, he said: "No funding availability, these acquisition offers were discarded more easily, based on the belief that credit markets were not enough to fund larger transactions force".
For companies like Del Monte, who were not considering selling, receiving an offer via phone call or letter printed just forcing executives to take a big decision. The information technology firm SRA International Inc. is one example, we have recently hired a financial adviser to study a possible sale after several private olive tree android equity firms such as Providence Equity Partners came knocking on your door.
Several other firms, such as General Atlantic, KKR and Bain Capital, olive tree android has also expressed interest and refused to be impressed by the $ 2 billion required by SARS - a premium of approximately 66% over the share price of the company before December when the press reported that there were interested in buying it.
In the middle of last year when private equity firm Leonard olive tree android Green & Partners, Los Angeles, announced it had acquired 9.5% of BJs Wholesale and stated that it intended olive tree android to propose an acquisition wholesaler, many of the mergers and acquisitions sector disliked this exotic approach.
Observers say Leonard Green acted as an activist investor, publicly stating that the action of the BJ was undervalued and the company could improve performance with a leveraged buyout or a new round of financing. Earlier this month, BJ bent to pressure and hired Morgan Stanley to explore "strategic alternatives" for the company. Leonard Green declined to comment.
In relation to earnings before interest, taxes, depreciation and amortization of the company, the average price paid by U.S. public companies olive tree android in 2010 was still much lower than 2007, according to data from Dealogic. That's because private equity firms continue adopting cautious about how much they borrow in relation to investing, say bankers.
Firms for acquisition are also aproveit
The private-equity firm Apollo Global Management wanted to buy U.S. food maker for nearly $ 3 billion, olive tree android said the message, olive tree android according to people familiar with the matter and reports to the authorities in the market.
Ten months after the e-mail - an expression of interest olive tree android to some in the area of mergers and acquisitions call "love letter" - Del Monte topou be the target of a leveraged buyout of $ 4 billion from a group led by Kohlberg Kravis Roberts & Co. The agreement is the latest in a series of companies that were discreetly approached by private equity firms.
Despite the frenetic takeover battle immortalized by the book "Barbarians at the Gate" (without translation in Brazil) and the inspired film in history, called "Wild on Wall Street," the private equity firms generally do not employ a hostile olive tree android approach in trying to buy companies. There is a business reason for this: they want to conquer the board, which usually remain in command after selarem the agreement.
There is also a political issue. Most large firms receiving billions in leveraged buyouts of public pension funds investments. These funds generally have clauses olive tree android that prevent firms from hostile takeover bid.
But firms have adopted a looser interpretation of these rules, dispatching calls love letters to businesses and expressing olive tree android your interest in them. Technically, the approach does not constitute a hostile bid - in which the tender is taken directly to shareholders - but may serve to convince the company to negotiate. This is especially true because these approaches have the amazing ability to always leak to the press.
The bankers and lawyers say that mergers and acquisitions olive tree android have been a proliferation of letters of offers, many of them motivated by the stock market recovery and the capital market. They say firms acquisitions have become more aggressive since the second olive tree android half of 2010, with the decrease of fears of a second recession and the demand for quality companies outstripping supply.
Acquisitions of firms have access to $ 400 billion in equity and may borrow at least two to three times that amount, creating the potential for more than $ 1 trillion in leveraged buyouts in coming years, said Jack MacDonald, vice head of mergers and acquisitions in the Americas at Bank of America Merrill Lynch. "As the leveraged finance markets are so vigorous, councils now need to take very seriously olive tree android those letters and statements of interest," said MacDonald. This differs from the situation in the last two years, he said: "No funding availability, these acquisition offers were discarded more easily, based on the belief that credit markets were not enough to fund larger transactions force".
For companies like Del Monte, who were not considering selling, receiving an offer via phone call or letter printed just forcing executives to take a big decision. The information technology firm SRA International Inc. is one example, we have recently hired a financial adviser to study a possible sale after several private olive tree android equity firms such as Providence Equity Partners came knocking on your door.
Several other firms, such as General Atlantic, KKR and Bain Capital, olive tree android has also expressed interest and refused to be impressed by the $ 2 billion required by SARS - a premium of approximately 66% over the share price of the company before December when the press reported that there were interested in buying it.
In the middle of last year when private equity firm Leonard olive tree android Green & Partners, Los Angeles, announced it had acquired 9.5% of BJs Wholesale and stated that it intended olive tree android to propose an acquisition wholesaler, many of the mergers and acquisitions sector disliked this exotic approach.
Observers say Leonard Green acted as an activist investor, publicly stating that the action of the BJ was undervalued and the company could improve performance with a leveraged buyout or a new round of financing. Earlier this month, BJ bent to pressure and hired Morgan Stanley to explore "strategic alternatives" for the company. Leonard Green declined to comment.
In relation to earnings before interest, taxes, depreciation and amortization of the company, the average price paid by U.S. public companies olive tree android in 2010 was still much lower than 2007, according to data from Dealogic. That's because private equity firms continue adopting cautious about how much they borrow in relation to investing, say bankers.
Firms for acquisition are also aproveit
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