August 7, 2012 |
Two months after former Best Buy Co. Chairman Richard Schulze exited the board amid scandal, he offered to buy the struggling electronics giant for as much as $8.84 billion, a deal that would make it the largest buyout ever of a U.S. retailer. But the offer of $24 to $26 a share was met with considerable skepticism Monday among analysts and investors, who nudged the stock price up $2.35, or 13.3%, to $19.99 but nowhere close to the proposed takeover offer price. Standard & Poor's cut Best Buy's credit rating to junk since such a buyout would add debt to its books.
August 14, 2012
Re "Carl's Jr. owner CKE delays IPO," Business, Aug. 11 The private equity firm Apollo Management, which bought Carl's Jr. operator CKE Inc. two years ago, did what many such firms do: use these companies as credit cards and load them with debt. According to your article, Apollo paid itself $190 million in dividends from CKE last year while cutting costs in part by stopping matching contributions to employees' 401(k) retirement accounts. Do you think the $190 million would have helped the CKE employees more than the executives at Apollo?
September 6, 2011
WASHINGTON — Carlyle Group is planning to raise $100 million through an initial public offering. The private equity firm is going public even as fears about the global economy have punished stock markets. Many companies canceled their IPOs in August. Private equity firms buy companies and later try to sell them for more money. They often borrow money to fund their purchases. The business slumped during the recession. Other large private equity companies have gone public recently.
March 12, 2013 |
Twinkies, the cult favorite snack brand orphaned by its liquidating parent company, Hostess Brands Inc., may have a new home. The popular product, along with Hostess brands such as CupCakes, Ho Hos and Ding Dongs, is being sold to private equity firms Apollo Global Management and C. Dean Metropoulos & Co. for $410 million. The companies submitted the only qualified bid by the deadline set by the Bankruptcy Court overseeing Hostess' case. The purchase, which includes five bakeries and certain equipment, is headed to court March 19 for final approval.
March 7, 2013 |
Brooding-teen retailer Hot Topic Inc. is about to become family with Talbots Inc., an apparel chain beloved by moms. Hot Topic, a mall staple based in City of Industry, is being sold for $600 million to Sycamore Partners, the private equity firm that this summer bought Talbots for $391 million. The $14-per-share cash price represents a 30% premium over Hot Topic's closing stock price Wednesday and was unanimously approved by the retailer's board, the company said Thursday. But the deal still requires shareholder and regulatory approval.
January 9, 2012 |
Escalating criticism by political foes of Republican presidential candidate Mitt Romney for his work at Bain Capital is unfairly giving private equity a bad name, an industry trade association said Monday. "There is a lot of misinformation being spread, purely for political purposes and on both sides of the aisle, as it pertains to private equity, said Steve Judge, interim head of the Private Equity Growth Capital Council. "While the business model has evolved over time, the fact of the matter is private equity provides capital and operational expertise to companies that are often underperforming or on the brink of failure.