Author: Reuters News

CVC Capital Partners is in talks about making a takeover offer for the British online gambling firm Betfair, writes Reuters. CVC said it had held preliminary discussions with investors Richard Koch, Antony Ball and other partners about Betfair, which could include an offer for the firm by funds advised by CVC together with the two men and partners, writes Reuters.

Reuters – CVC Capital Partners, the private equity firm that owns Formula One, said it was in talks about making a takeover offer for the British online gambling firm Betfair.

CVC on Monday said it had held preliminary discussions with investors Richard Koch, Antony Ball and other partners about Betfair, which could include an offer for the firm by funds advised by CVC together with the two men and partners.

Koch, a co-founder of international strategy consultancy LEK Consulting, holds a 6.5 percent stake in Betfair. Ball is a non-executive director at Luxembourg-listed investment group Brait and is the co-founder of its private equity business.

Betfair, which operates an online exchange that allows gamblers to bet against each other, declined to comment on CVC’s statement when contacted by Reuters.

Shares in Betfair have risen 6 percent in the last three months, but they are still trading at almost half the group’s 2010 listing price. The stock closed on Friday at 699.5 pence, valuing the company at just over 725 million pounds ($1.11 billion).

Betfair has been losing market share in Britain where the online gambling sector is highly competitive in recent months. Many analysts believe the company has suffered from failing to identify clearly if it regarded itself as a gambling or a technology company.

Betfair is in the process of pulling back from markets providing almost a quarter of its revenues to focus on areas where gambling regulations are clearly defined in a bid to reduce uncertainty and volatility for its investors.

The firm recently said it would pull out of Germany and Greece because of problems over licences and punitive tax rates.

The post Reuters – CVC Mulls Betfair Takeover Bid appeared first on peHUB.

Industrial and construction supplies distributor HD Supply Holdings Inc, a former division of Home Depot Inc, filed for a $1 billion initial public offering of its shares to take advantage of the rebounding U.S. housing market. Bain Capital, Carlyle Group and Clayton, Dubilier & Rice, who took the company private for $8.5 billion in 2007, each own about 28 percent of the company. Home Depot continues to hold a 12.4 percent stake in the company, according to HD Supply’s prospectus filed with the Securities and Exchange Commission on Friday.

(Reuters) – Industrial and construction supplies distributor HD Supply Holdings Inc, a former division of Home Depot Inc, filed for a $1 billion initial public offering of its shares to take advantage of the rebounding U.S. housing market.

Bain Capital, Carlyle Group and Clayton, Dubilier & Rice, who took the company private for $8.5 billion in 2007, each own about 28 percent of the company.

Home Depot continues to hold a 12.4 percent stake in the company, according to HD Supply’s prospectus filed with the Securities and Exchange Commission on Friday. ()

Atlanta, Georgia-based HD Supply is one of the largest distributors of construction, industrial and maintenance supplies in North America.

The company said BofA Merrill Lynch, Barclays, J.P. Morgan and Credit Suisse are the lead underwriters of the IPO.

The company plans to use the proceeds from the offering to repay debt and for general corporate purposes.

Low interest rates and rising rents have pushed many consumers to buy homes, reviving the U.S. housing market.

Homebuilder TRI Pointe Homes Inc, Taylor Morrison Home Corp and Boise Cascade Co, whose products are used in residential construction and remodeling projects, went public this year.

HD Supply did not disclose the number of shares on offer or their proposed price.

The amount of money a company says it plans to raise in its initial filings is used to calculate registration fees. The final size of the IPO could be different.

The post Reuters – HD Supply Holdings Files for $1B IPO appeared first on peHUB.

Dutch brewer Heineken plans to sell its Finnish unit Hartwall to Hartwall Capital, an investment firm owned by the family which started the beverage business, Reuters reported. The report in the Finnish business magazine Talouselama cited unnamed sources and gave no deal value.

(Reuters) – Dutch brewer Heineken plans to sell its Finnish unit Hartwall to Hartwall Capital, an investment firm owned by the family which started the beverage business, a report said on Friday.

The report in the Finnish business magazine Talouselama cited unnamed sources and gave no deal value.

Hartwall Capital’s chairman Tom von Weymar, in the report, was quoted as saying the firm was “eyeing” a purchase but declined to comment further. (Reporting by Terhi Kinnunen; Editing by Ritsuko Ando)

The post Reuters – Heineken Selling Finish Unit to Hartwall appeared first on peHUB.

Japanese railway and real estate group Seibu Holdings said on Friday it opposed Cerberus Capital Management LP‘s renewed attempt to boost its stake in the company to 44.7 percent, heating up a public battle between the two parties. Cerberus last week said it wanted to increase its stake to 44.7 percent from 32.4 percent, a higher target than the U.S. investment fund had initially set. Cerberus has been in the process of buying Seibu shares through a public tender offer. Seibu also opposes Cerberus’s plans to send eight members that they recommend to Seibu’s board, saying that some of the candidates are not independent from Cerberus.

(Reuters) – Japanese railway and real estate group Seibu Holdings said on Friday it opposed Cerberus Capital Management LP’s renewed attempt to boost its stake in the company to 44.7 percent, heating up a public battle between the two parties.

Cerberus last week said it wanted to increase its stake to 44.7 percent from 32.4 percent, a higher target than the U.S. investment fund had initially set. Cerberus has been in the process of buying Seibu shares through a public tender offer.

Seibu also opposes Cerberus’s plans to send eight members that they recommend to Seibu’s board, saying that some of the candidates are not independent from Cerberus.

If Cerberus succeeds in the tender offer, it will have not only a larger stake but 9 of 18 directors on an expanded board in which it already has one director. The new board candidates include former U.S. Vice President Dan Quayle, who is now chairman of Cerberus Global Investments.

Cerberus’s attempts “actually means that it is trying to control our company”, Seibu said.

The U.S. private equity firm had in March proposed lifting the stake to 36.44 percent and nominated three new directors, as it attempts to shake up Seibu’s corporate governance.

In 2005 Cerberus led a bailout of Seibu after Seibu Railway, a predecessor to the current company, was delisted as a result of making a false entry in its securities report.

Cerberus, which spent more than 100 billion yen ($1 billion) to become the largest shareholder in Seibu, is willing to spend an additional 60 billion yen to gain a larger control.

The post Reuters – Seibu Opposes Cerberus Bid appeared first on peHUB.

U.S. buyouts firm KKR & Co L.P. has agreed to buy a controlling stake in Alliance Tire Group from Warburg Pincus, the three companies said on Friday, without disclosing details of the transaction. The deal would be the biggest private equity transaction in India after Bain Capital paid about $1 billion to buy a 30 percent stake in business process and technology services provider Genpact in August 2012. The U.S. private equity firm will put in slightly over $300 million of its own money to buy an over 75 percent stake in Alliance, a source familiar with the matter told Reuters on Friday.

(Reuters) – U.S. buyouts firm KKR & Co L.P. has agreed to buy a controlling stake in Alliance Tire Group from Warburg Pincus LLC, the three companies said on Friday, without disclosing details of the transaction.

The deal would be the biggest private equity transaction in India after Bain Capital paid about $1 billion to buy a 30 percent stake in business process and technology services provider Genpact (G.N) in August 2012.

Reuters reported on Tuesday, citing sources with direct knowledge, that KKR would pay around $500 million for the controlling stake from Warburg, which invested in the tyre maker Alliance in 2007.

The U.S. private equity firm will put in slightly over $300 million of its own money to buy an over 75 percent stake in Alliance, a source familiar with the matter told Reuters on Friday.

Alliance Tire will be the last new investment from KKR’s debut Asia fund, a $4 billion fund raised in 2007. The firm is near to a final close on a new $6 billion Asia fund, the largest ever buyouts fund raised for the region.

KKR’s capital markets team put together the financing package for the deal, the source said, which included financing from Crescent Mezzanine and Ivy High Income Fund.

Alliance owns two manufacturing plants, one each in Israel and India, and has a sales presence in more than 120 countries, according to its website. Alliance’s tyres are also made at contract manufacturing facilities in China and Taiwan.

The group had sales of more than $500 million in 2012.

Warburg Pincus, which invested over $3 billion in India, will be exiting its 6-year-old investment in the company.

Yogesh Mahansaria, founder of ATG, will continue to maintain a stake in the company and partner with KKR to continue to grow the business, the statement said.

Credit Suisse advised Alliance on the deal while Nine Rivers Capital advised the founders. Barclays Capital and JPMorgan advised KKR.

(Additional reporting by Sumeet Chatterjee in MUMBAI; Editing by Jeremy Laurence)

The post Reuters – KKR Buying Controlling Stake in Alliance Tire appeared first on peHUB.

Professional social network LinkedIn Corp said it will buy Pulse, a news reader and mobile content distribution platform, for $90 million in cash and stock. More than 30 million users have activated Pulse news reader apps on Apple Inc’s iOS and Google Inc’s Android operating systems. LinkedIn will pay about 90 percent of the deal value in stock.

(Reuters) – Professional social network LinkedIn Corp said it will buy Pulse, a news reader and mobile content distribution platform, for $90 million in cash and stock.

More than 30 million users have activated Pulse news reader apps on Apple Inc’s iOS and Google Inc’s Android operating systems.

LinkedIn will pay about 90 percent of the deal value in stock.

The post Reuters – LinkedIn Buys Pulse for $90M appeared first on peHUB.

J.C. Penney Co Inc. has hired the financial advisory arm of Blackstone Group LP as it explores ways to bolster its balance sheet, a source familiar with the matter told Reuters Thursday. The ailing retailer is seeking to raise about $1 billion in cash, according to the Wall Street Journal, which reported the news earlier. Citing sources familiar with the matter, the paper said options could include selling a minority stake in J.C. Penney and that J.C. Penney has already reached out to possible investors including private equity firms.

(Reuters) – J.C. Penney Co Inc has hired the financial advisory arm of Blackstone Group LP as it explores ways to bolster its balance sheet, a source familiar with the matter said on Thursday.

The ailing retailer is seeking to raise about $1 billion in cash, according to the Wall Street Journal, which reported the news earlier. Citing sources familiar with the matter, the paper said options could include selling a minority stake in J.C. Penney and that J.C. Penney has already reached out to possible investors including private equity firms.

A J.C. Penney spokeswoman said that over the last several months, the company has hired outside advisors to provide it with “expertise about how to best position the company from a financial standpoint during the transformation.”

“It is safe to assume this will continue as part of the work now underway to develop a game plan for the company going forward,” the spokeswoman said in an email without confirming Blackstone as the adviser.

Blackstone declined to comment.

The post Reuters – J.C. Penney Hires Blackstone as Advisor appeared first on peHUB.

Republican members of the U.S. House of Representatives criticized top officials at the U.S. Securities and Exchange Commission on Thursday for missing congressionally mandated deadlines to complete new rules designed to help small businesses raise capital. In a hearing that at times grew tense, several Republicans on a House small-business panel vented their frustrations after they did not get clarity from the SEC on when the rules would be completed, Reuters reported. The rules at the center of Thursday’s hearing stem from the 2012 Jumpstart Our Business Startups, or JOBS Act.

(Reuters) – Republican members of the U.S. House of Representatives criticized top officials at the U.S. Securities and Exchange Commission on Thursday for missing congressionally mandated deadlines to complete new rules designed to help small businesses raise capital.

In a hearing that at times grew tense, several Republicans on a House small-business panel vented their frustrations after they did not get clarity from the SEC on when the rules would be completed.

“The SEC expects reporting companies as their regulator to respect their deadlines. Congress is your regulator. Is it fair for us to expect you to respect our deadlines?” asked Michigan Representative Kerry Bentivolio.

“We do, congressman,” said Lona Nallengara, acting director of the SEC’s Division of Corporation Finance.

Bentivolio later quipped: “No date. No real deadline. Just when you get around to it. I’m getting a lot of verbal moonwalking, but I’m not getting anywhere.”

The rules at the center of Thursday’s hearing stem from the 2012 Jumpstart Our Business Startups, or JOBS Act.

Signed into law roughly one year ago, the JOBS Act was designed to spur small business growth by relaxing federal securities regulations to make it easier for companies to raise capital and eventually go public.

It received wide bipartisan support, but has also faced criticism from some Democrats and investor advocates who say it causes critical information to be withheld from investors and could expose them to fraud.

Many of the provisions of the JOBS Act went into effect when it was signed into law, but several key sections still require rule-writing by the SEC.

One rule, for instance, would lift a long-standing ban on general advertising for private placement offerings, making it easier for hedge funds and others to reach new investors.

Another rule would establish a new regulatory regime for intermediaries that offer crowdfunding, a capital-raising strategy that lets investors take small stakes in private start-ups over the Internet.

The general solicitation rule has so far generated the most controversy.

SEC staff had initially recommended issuing it right away as an “interim” final rule and tweaking it later as needed. But investor advocates decried that approach, saying the SEC needed to take its time and add critical investor protections before lifting the ban.

Ultimately, however, the SEC decided to propose a draft rule to give the public a chance to comment before adopting a final regulation.

Representative Patrick McHenry of North Carolina later lashed out at the agency for its change in approach after e-mails obtained by a U.S. House panel showed that former SEC Chairman Mary Schapiro delayed immediately implementing the rule amid concerns it might tarnish her legacy as a pro-investor leader of the agency.

Schapiro departed the SEC shortly thereafter, leaving a divided four-member commission unable to agree on a final rule.

The back story of what happened with the general solicitation rule at the SEC was still fresh in many Republicans’ minds on Thursday.

“It doesn’t seem to be a priority to the SEC. This is a really big deal,” said Representative Blaine Luetkemeyer of Missouri. “I don’t think you see the importance of your job. You help create economic activity in this country, sir.”

Mary Jo White, who was sworn in on Wednesday as the SEC’s new chairman, has said JOBS Act rulemaking would be among her top priorities, but she has not yet revealed her thinking on how the rules should be crafted.

Nallengara and the SEC’s acting trading and markets director, John Ramsay, who both testified before the House panel on Thursday, declined to provide specific timetables to lawmakers.

But they stressed the agency is trying to get things done.

“The staff…is working as if their rulemaking is the first one to go,” Nallengara said. “The staff is working very hard to get these in place.”

The post Reuters – Republicans Accuse SEC of Dragging Feet on JOBS Act appeared first on peHUB.

A private equity firm spun off from Bank of America Corp in 2010 has raised its first fund, allowing it to continue making investments in mid-sized companies as the No. 2 U.S. bank pulls back from the business, Reuters reported. Ridgemont Equity Partners executives told Reuters that the firm received total commitments of $735 million from institutional investors in the United States, Europe and Asia. They include AlpInvest Partners Inc and the State of Wisconsin Investment Board, but not Bank of America. Charlotte, North Carolina-based Ridgemont raised the capital at a time when dollars are scarce for first-time funds.

(Reuters) – A private equity firm spun off from Bank of America Corp in 2010 has raised its first fund, allowing it to continue making investments in mid-sized companies as the No. 2 U.S. bank pulls back from the business.

Ridgemont Equity Partners executives told Reuters that the firm received total commitments of $735 million from institutional investors in the United States, Europe and Asia. They include AlpInvest Partners Inc and the State of Wisconsin Investment Board, but not Bank of America.

Charlotte, North Carolina-based Ridgemont raised the capital at a time when dollars are scarce for first-time funds. Only 28 reached a final close in the first quarter, the lowest number in any quarter from 2008 to 2013, according to Preqin, which tracks private equity investments.

The new funds accounted for just 6 percent of the $67 billion raised by all funds during the period, compared with 20 percent at the peak.

“It’s almost always challenging for first-time funds, and then you add in a tough fund-raising market in general,” said Travis Hain, who is on Ridgemont’s executive committee with Walker Poole and Trey Sheridan. “But if you have the right story, you’ll find support.”

Ridgemont is an unusual case because the firm’s principals have been making investments together since 1993, injecting more than $3 billion into 115 companies. Before the spinoff, the firm was known as Banc of America Capital Investors and received its seed money from the bank.

Bank of America has been winding down its private equity business as Chief Executive Brian Moynihan looks to streamline the company and follow new rules. The U.S. Dodd-Frank financial reform law limits much capital banks can invest in private equity funds.

Bank of America sold a $1.9 billion portfolio to insurer AXA SA’s private equity arm in 2010. The bank had $1 billion in private equity investments at the end of the fourth quarter, down from $5.7 billion at the beginning of 2010.

Bank of America’s goal is to sell its investments over time as the company focuses on its core businesses, spokesman Jerry Dubrowski said.

Ridgemont still manages undisclosed private equity investments for the bank, but they are in “run-off” mode, Hain said.

Being independent has advantages for Ridgemont, Hain said. The firm is not part of a larger bureaucracy and does not face the same regulatory restrictions as a bank. It also has a more focused investment strategy, sticking to mid-sized companies in four sectors ranging from energy to telecommunications, he said.

So far, the firm, which has 27 employees, has committed about half of its new fund to investments in nine companies. This month, the bank closed an investment in a software and marketing company called Simpleview Inc. Ridgemont’s investments typically range from $25 million to $75 million.

AlpInvest partner Chris Perriello said the investor started building a relationship with the Ridgemont executives before they left the bank and as they were taking steps to become independent. “We felt they had a high-quality team, a strong record,” he said.

Officials at the Wisconsin investment board were not immediately available for comment.

Not every bank is backing away from private equity investments. Wells Fargo & Co has said it can still make investments through two funds that are subsidiaries . Goldman Sachs Group Inc, meanwhile, is trying to do private equity deals alongside investors that keep their funds in separately managed accounts.

The post Reuters – Ridgemont Equity Raises $735M Fund appeared first on peHUB.

(Reuters) – Buyout firm Apax Partners and Morgan Stanley’s private equity arm are exploring a sale of Chicago-based insurance brokerage Hub International that could be valued at around $2 billion, two people familiar with the matter said this week.

The potential sale of Hub would come six years after Apax and Morgan Stanley Principal Investments took the company private for $1.8 billion, including $145 million of debt.

Representatives for Hub, Apax and Morgan Stanley declined to comment.

The private equity owners have yet to launch a sale process for Hub and the considerations are at an early stage, one of the people said, asking not to be named because the matter is not public.

Hub, which provides property and casualty, reinsurance, life and health, as well as employee benefits, has grown through 300 acquisitions of insurance brokerages since its inception in 1998, according to the company’s website.

The firm was originally formed with the merger of 11 privately-held Canadian insurance brokerages in 1998, and today has 250 satellite offices throughout the United States.

Insurance brokers have become attractive takeover targets recently, because they have seen strong revenue growth as a result of raising prices on their offerings to offset big catastrophe losses in 2011.

In November, Canadian private equity firm Onex Corp announced it was buying U.S.-based insurance brokerage USI Holdings from Goldman Sachs Group for $2.3 billion.

Photo courtesy of Shutterstock

The post Apax, Morgan Stanley Look to Sell Hub – Sources appeared first on peHUB.

TV station operator Sinclair Broadcast Group Inc. said it will buy Fisher Communications Inc. for about $373 million to expand its operations in western United States, Reuters reported. The offer values Fisher at $41 per share, a premium of 5 percent to the stock’s Wednesday closing price. It is 44 percent above the stock’s closing on Jan. 9, a day before Fisher, under pressure from billionaire investor Mario Gabelli, said it was exploring strategic alternatives, including a sale.

(Reuters) – TV station operator Sinclair Broadcast Group Inc said it will buy Fisher Communications Inc for about $373 million to expand its operations in western United States.

The offer values Fisher at $41 per share, a premium of 5 percent to the stock’s Wednesday closing price.

It is 44 percent above the stock’s closing on Jan. 9, a day before Fisher, under pressure from billionaire investor Mario Gabelli, said it was exploring strategic alternatives, including a sale.

Gabelli, the largest shareholder in the company with a 26.75 percent stake, had then told Reuters that he preferred a leveraged restructuring to an outright sale.

Seattle-based Fisher owns 20 television stations in eight markets and three radio stations. It runs CBS and ABC affiliates such as KPIC TV, KCBY TV and KATU TV.

Sinclair said it expects to finance the acquisition through cash on hand and debt. The company may also raise funds from capital markets.

The company said it would reach about 34 percent of U.S. television households following the Fisher acquisition.

Sinclair’s shares rose 3 percent to $22.48 in early trading on the Nasdaq. Trading in Fisher shares were halted.

The post Reuters – Sinclair Broadcast to Buy Fisher Communications appeared first on peHUB.

Tesla Motors Inc. Chief Executive Elon Musk is pushing to change Texas law to allow his electric car company to sell directly to consumers, and he took his fight to the state Capitol on Wednesday. Texas law prevents Tesla from selling its cars directly to the public – as it does in other states – because it does not have a relationship with a franchised dealer. In Texas, new vehicles are generally required to be sold through dealers.

(Reuters) – Tesla Motors Inc (TSLA.O) Chief Executive Elon Musk is pushing to change Texas law to allow his electric car company to sell directly to consumers, and he took his fight to the state Capitol on Wednesday.

Texas law prevents Tesla from selling its cars directly to the public – as it does in other states – because it does not have a relationship with a franchised dealer. In Texas, new vehicles are generally required to be sold through dealers.

“Nothing could be further from what Texas is all about,” Musk told reporters at a Capitol press conference on Wednesday, citing examples of Texans such as Michael Dell who have succeeded in direct-to-consumer sales.

A proposal in the Texas legislature would allow U.S.-based manufacturers of electric or battery-powered vehicles to sell directly to consumers in the state.

The Texas Automobile Dealers Association opposes the legislation, which is pending before committees in the House and Senate.

“We don’t see any business reason or law reason that this product should receive a special exception from the law that applies to everyone else,” said Rob Braziel, CEO of legislative affairs of the Texas Automobile Dealers Association.

Braziel said the association is worried that any manufacturer of electric vehicles could use the new law to compete directly with their own dealers.

State Representative Eddie Rodriguez, an Austin Democrat and the House author of the bill, said that he’d like to see the auto dealers come to the table to negotiate.

“I’m not trying to dismantle the current system,” Rodriguez said. “But at the same time, we can’t let the system get in the way of breakthrough technology.”

Musk said he’s been warned that the legislation is unlikely to succeed but that he wants to give the effort his best shot.

He said he discussed the proposal about a month ago with Texas Governor Rick Perry and that the governor agreed to support the measure if it lands on his desk. However, the governor’s office did not confirm that.

“Unfortunately, I’m not privy to the personal conversations the governor has, so I can’t confirm that for you,” Perry spokesman Josh Havens said in an email. “The legislature will debate a number of bills this session and the governor will thoroughly review any that make it through the process and arrive on his desk.”

Meanwhile, Tesla is allowed to show cars at educational galleries in Texas, but staffers there are not allowed to discuss prices or offer test drives, Musk said.

“Is Texas a free enterprise state or not?” Musk asked. “In this particular area, it is the worst in the country.”

Musk reiterated on Wednesday that Tesla will report its first quarterly profit when it announces first-quarter results and that the company had exceeded it sales target for that period.

The automaker went public in 2010 and has narrowed its losses as production of the Model S sedan ramped up late last year. Earlier this month, Tesla said it was partnering with Wells Fargo & Co (WFC.N) and U.S. Bank (USB.N) on a financing product that it says will make its electric cars accessible to more people.

(Editing by Bernard Orr)

The post Reuters – Tesla Motors Pushing to Sell Directly to Consumers in Texas appeared first on peHUB.

Protective Life Corp. agreed to buy a portfolio of old policies from French insurer AXA SA‘s U.S. business for $1.1 billion, with the aim of squeezing more value out of them. Birmingham, Alabama-based Protective Life said the deal with Axa’s Mony Life Insurance Company should produce a steady income stream and increase earnings per share. Most of the policies are life insurance written before 2004.

(Reuters) – Protective Life Corp (PL.N) agreed to buy a portfolio of old policies from French insurer AXA SA’s (AXAF.PA) U.S. business for $1.1 billion, with the aim of squeezing more value out of them.

Birmingham, Alabama-based Protective Life said the deal with Axa’s Mony Life Insurance Company should produce a steady income stream and increase earnings per share. Most of the policies are life insurance written before 2004.

AXA, which bought Mony in 2004 for $1.5 billion, will take a capital loss of below 100 million euros ($131 million), in part attributable to the difference between what it paid for the business initially and what it is being sold for now.

Last month, people familiar with the situation said Protective Life was the leading candidate to buy U.S. life insurance assets from Axa, which has been expanding into emerging markets while scaling back its presence in North America after years of underperformance in that region.

AXA said on Thursday it would continue to use Mony Life to write new business in the United States.

“This transaction allows us to further grow our US business where we have been achieving good momentum while freeing up capital invested in closed portfolios to improve our financial flexibility and enable additional investment in high-growth markets and businesses,” AXA Chief Executive Henri de Castries said in a statement.

AXA shares were up 1.2 percent at 3.38 a.m ET, outperforming the European insurance sector .SXIP, which was up 0.4 percent.

The transaction values the portfolio at 0.7 times its book value, a premium to AXA’s own book value, a Paris-based analyst said. AXA trades at 0.6 times book, according to Thomson Reuters data.

“All in all I would expect a small positive reaction because the market has concerns about (AXA’s) leverage,” the analyst said, noting that the French insurer borrows at higher yields than larger German rival Allianz (ALVG.DE).

Including a capital surplus of $303 million, the total investment by Protective Life is about $1.09 billion, the company said.

It expects the deal to add between $0.10 and $0.15 to its earnings per share in 2013 and between $0.55 and $0.65 per share in 2014.

Protective Life shares closed up 2 percent at $35.59 on the New York Stock Exchange on Wednesday, prior to the announcement.

Willkie Farr & Gallagher LLP and Barclays PLC were financial advisers to Protective Life.

($1 = 0.7642 euros)

(Reporting by Tej Sapru in Bangalore and Christian Plumb in Paris; Editing by Erica Billingham)

The post Reuters – – Protective Life Buys AXA Portfolio for $1.1B appeared first on peHUB.

A private equity consortium bid $65 per share, or $11.1 billion, for Life Technologies Corp., but fell short of a rival offer from Thermo Fisher Scientific Inc., Reuters reported Wednesday. Thermo Fisher’s bid for the genetic testing equipment maker came in at the high-end of the $65-$70 per share range that it had been considering, two people familiar with the matter told Reuters. The exact amount Thermo bid could not be obtained. Blackstone Group LP, Carlyle Group LP and KKR & Co LP, which are part of the buyout consortium, declined to comment. Singapore’s state investor, Temasek Holdings, which is also part of the consortium, could not be reached for comment.

(Reuters) – A private equity consortium bid $65 per share, or $11.1 billion, for Life Technologies Corp , but fell short of a rival offer from Thermo Fisher Scientific Inc, two people familiar with the matter said on Wednesday.

Thermo Fisher’s bid for the genetic testing equipment maker came in at the high-end of the $65-$70 per share range that it had been considering, two other people familiar with the matter said. The exact amount Thermo bid could not be obtained.

Blackstone Group LP, Carlyle Group LP and KKR & Co LP, which are part of the buyout consortium, declined to comment. Singapore’s state investor, Temasek Holdings, which is also part of the consortium, could not be reached for comment.

Life Tech declined to comment. Thermo Fisher did not immediately respond to requests for comment.

The post Reuters – PE Firms Bid $11.1B for Life Tech appeared first on peHUB.

Private equity firm Advent International has opened its first office in China to take advantage of investment opportunities in the country, Reuters wrote. Advent, founded in 1984, previously operated in China through an affiliate. It does not currently have direct investments in China, but some of the companies it backs, such as Spanish explosives maker MAXAM, have operations there. The decision to open a Shanghai office follows a review of the Boston-based firm’s operations, which led to the closure of offices in Milan and Istanbul last month, an Advent spokeswoman said. Advent already has an office in India.

(Reuters) – Private equity firm Advent International has opened its first office in China to take advantage of investment opportunities in the country.

Advent, founded in 1984, previously operated in China through an affiliate. It does not currently have direct investments in China, but some of the companies it backs, such as Spanish explosives maker MAXAM, have operations there.

The decision to open a Shanghai office follows a review of the Boston-based firm’s operations, which led to the closure of offices in Milan and Istanbul last month, an Advent spokeswoman said. Advent already has an office in India.

“There are many interesting investment prospects in China to which we can apply our international experience,” Andrew Li, Advent’s principal and co-head of Greater China, said in a statement.

Private equity companies like Advent buy businesses and aim to sell them or list them on the stock market at a profit.

Many of the biggest private global equity firms, including The Carlyle Group CVC and Bain Capital, already have offices in China.

Last year Advent, which targets investments in companies worth between 200 million and 2 billion euros, raised 8.5 billion euros ($11.10 billion) in one of the biggest private equity fundraisings since the financial crisis in 2008.

The Shanghai office will provide local support for companies backed by Advent which want to grow in China either organically or through acquisitions. It will also help Advent’s global team assess the China angle on international deals.

The six-person China team, led by Filippo de Vecchi and Li, will also look to invest in Chinese companies, focusing on those in the chemicals, healthcare, retail, consumer and leisure sectors.

The post Reuters – Advent Opens Office in China appeared first on peHUB.

Abu Dhabi-based private equity firm Gulf Capital said on Wednesday that its portfolio company, Techno Group Investment Holdings, bought a 75-percent stake in a Turkish provider of outsourced diagnostic imaging services, Reuters reported. Techno Group bought the stake in Turkish firm Dogu Tip, Gulf Capital said, without revealing the financial details of the acquisition.

(Reuters) – Abu Dhabi-based private equity firm Gulf Capital said on Wednesday that its portfolio company, Techno Group Investment Holdings, bought a 75-percent stake in a Turkish provider of outsourced diagnostic imaging services.

Techno Group bought the stake in Turkish firm Dogu Tip, Gulf Capital said, without revealing the financial details of the acquisition.

Dogu Tip will be merged with Techno Group, which already operates 34 diagnostic imaging centres in Egypt, Jordan and the Gulf region, the statement added.

Healthcare-related private equity activity in Turkey has seen increased activity in recent years as the fast-growing economy’s growing population of about 75 million people provides growth opportunities for companies offering such services.

The country also passed new regulations in February aimed at making private investment in its healthcare sector easier, a move which officials hope could unlock billions of dollars of investment over the next few years.

Gulf Capital, which manages close to $2 billion in assets currently, plans to double its assets under management by 2018, its chief executive said earlier this month. (Reporting by Mirna Sleiman; Editing by Dinesh Nair)

The post Reuters – Gulf Capital Portfolio Co. Buys Turkish Diagnostics Co. appeared first on peHUB.

Foundation Capital has unveiled its seventh fund, a $282 million pool of money that the venture firm plans on investing in early-stage startups, according to VentureBeat, writes Reuters. Menlo Park, Calif.-based Foundation Capital primarily invests in early stage companies and plans to focus this current fund on consumer technology, information technology, and clean technology.

Reuters – Foundation Capital announced its seventh fund today, a $282 million pool of money that the venture firm plans on investing in early-stage startups.

Menlo Park, Calif.-based Foundation Capital has handled a total of $2.7 billion since it was first founded 17 years ago. This firm primarily invests in early-stage companies and plans to focus this current fund on consumer technology, information technology, and clean technology.

Eight of the venture firm’s partners will invest from this funding, including Charles Moldow and Ashmeet Sidana who we chatted with last year about the state of venture capital and then unique relationship VCs have with each other. Moldow refers to it as “coopatition” a little cooperation and little competition mixed in together.

Some of the most well-known companies that Foundation Capital has invested in includes Chegg, Ebates, and Netflix.

The post Reuters – Foundation Capital Raises Seventh Fund appeared first on peHUB.

US private equity firm KKR has hired Hirofumi Hirano from AlixPartners Asia to serve as its chief executive officer of KKR Japan as it expands its presence in the country, writes Reuters. Shusaku Minoda, the current chief executive of the local unit, will become chairman of KKR Japan, KKR said in a statement.

Reuters – U.S private equity firm KKR & Co LP said on Wednesday it has hired Hirofumi Hirano from AlixPartners Asia LLC to serve as its chief executive officer of KKR Japan as it expands its presence in the country.

Shusaku Minoda, the current chief executive of the local unit, will become chairman of KKR Japan, KKR said in a statement. Both appointments take effect on April 15.

Hirano served as head of Asia’s financial service industry at AlixPartners, which specializes in corporate turnarounds. Prior to joining AlixPartners, he was chief executive at a merchant banking unit of a Japanese brokerage now known as SMBC Nikko Securities, according to the statement.

KKR last month added two specialists to its Japan team, increasing its headcount to 12. The firm also last month agreed to sell Intelligence Holdings, a staffing agency it bought in 2010, to a local rival Temp Holdings, after doubling the value of the company.

KKR also in 2011 made a joint investment with Japanese trading house Itochu Corp in U.S. oil and gas firm Samson Investment Co for more than $7.2 billion.

The post Reuters – KKR Hires Hirano from AlixPartners as Japan Head appeared first on peHUB.

Thermo Fisher Scientific made a binding offer for Life Technologies Corp as private equity firms raced to finalize a consortium to take the genetic testing equipment maker private, writes Reuters. Life Tech, with a current market value of more than $11 billion, has become an attractive target due to its strength in advanced diagnostics and gene sequencing and if Thermo Fisher were to prevail, the deal would make it a major player in the genetic sequencing market.

PRESS RELEASE

Thermo Fisher Scientific Inc made a binding offer for Life Technologies Corp on Tuesday as private equity firms raced to finalize a consortium to take the genetic testing equipment maker private, several people familiar with the matter said.

Life Tech, with a current market value of more than $11 billion, has become an attractive target due to its strength in advanced diagnostics and gene sequencing and if Thermo Fisher were to prevail, the deal would make it a major player in the genetic sequencing market.

It would be also be by far its biggest deal since the $12.8 billion merger in 2006 of Thermo Electron and Fisher Scientific International that created the world’s largest maker of scientific equipment and laboratory instruments.

Thermo Fisher met a bid deadline on Tuesday but private equity firms working on a joint bid missed it and were working late into the evening to secure the equity required to support an offer, the people said.

Blackstone Group LP, Carlyle Group LP and Singapore’s state investor Temasek Holdings were in talks with KKR & Co LP about securing the required equity and finalizing a buyout consortium, the people said.

Life Technologies would likely accept an offer past the bid deadline to keep the process competitive, the people added.

Thermo Fisher is bidding more than $65 per each Life Tech share, two of the people said. While the exact price could not be learned, Thermo had been considering a bid of $65 to $70 per share, sources said last week.

The private equity group would likely bid close to $65 per share, two separate people said.

All the people asked not to be named because details of the auction are not public. Life Technologies, Thermo Fisher, KKR, Blackstone and Carlyle declined to comment while Temasek did not respond to a request for comment.

Shares of Life Tech ended up 1.3 percent at $66.19 on Tuesday, giving it a market value of $11.3 billion. They are up 33 percent so far this year on expectations of a possible deal, outperforming a 9.6 percent rise in the S&P 500 index.

At this level, Life Tech trades at 14.6 times forward 12-month earnings compared to an average 13.6 times for its peer group, according to Thomson Reuters data.

Carlsbad, California-based Life Tech, which has hired advisers to explore a sale, had also attracted interest from industrial and healthcare conglomerate Danaher Corp and drugmaker Roche Holding AG, people familiar with the matter told Reuters previously.

While their position could not be confirmed, one of the people said that neither of these two companies had carried out the procedural work necessary ahead of the bid deadline that would have allowed them to make offers. Danaher and Roche did not respond to requests for comment.

Roche, which has its own diagnostics business, made a hostile run at genetic sequencing company Illumina Inc last year but walked away from the $6.8 billion offer, refusing demands to raise the bid.

Life Tech is itself the product of the combination of two companies — Invitrogen, a maker of cultures used in the manufacture of biotech medicines, and Applied Biosystems, a genetic testing company.

If Thermo Fisher wins the auction, it would also boost its presence in scientific research, genetic analysis and applied sciences, creating a healthcare technology giant with annual revenues of over $16 billion and some 50,000 employees.

At a range of $65 to $70 per share for Life Tech, Thermo Fisher believes the deal would add to its earnings, people familiar with the matter have previously told Reuters.

(Additional reporting by Bill Berkrot in New York; Editing by Edwina Gibbs)

The post Reuters – Thermo Bids for Life Tech appeared first on peHUB.

Brazilian airport agency Infraero will put off going public until 2017, after the agency bolsters its assets with proceeds from the upcoming auction of licenses to run two airports, its president said on Monday, Reuters wrote. Infraero is still considering a plan to list shares on Brazil’s equity markets but first it wants to strengthen the balance sheet, Infraero President Gustavo do Vale said.

(Reuters) – Brazilian airport agency Infraero will put off going public until 2017, after the agency bolsters its assets with proceeds from the upcoming auction of licenses to run two airports, its president said on Monday.

Infraero is still considering a plan to list shares on Brazil’s equity markets but first it wants to strengthen the balance sheet, Infraero President Gustavo do Vale said.

“In order for Infraero to go public you have to stabilize its asset base … define the size of the company so you can sell something … we are considering beginning with the process this year and maybe do the listing in 2017,” Vale said.

For years, President Dilma Rousseff and her predecessor Luiz Inácio Lula da Silva considered a partial privatization of Infraero through an IPO to address the many infrastructure woes choking growth in Latin America’s biggest economy.

Airport operators Schiphol and Aeroports de Paris may bid together for a stake in Rio de Janeiro’s Galeão airport. The government wants to sell a 51 percent stake in Galeão and Belo Horizonte’s Confins airport to operators who can help improve them ahead of the 2014 soccer World Cup and the 2016 Olympic Games.

Brazil’s government expects bids for both airports to be worth 11.4 billion reais ($5.8 billion). The two airports should be auctioned off by September.

The post Reuters – Brazil’s Infraero will Put Off IPO appeared first on peHUB.