With an hour left in the trading day stocks have rebounded from earlier losses, brushing aside concerns after the Federal Reserve announced it was raising the interest rate at the discount window.Stocks have showed some resiliency in the last 10 days or s
Despite all the hand-wringing Thursday evening, U.S. markets gave a rather nonchalant response to the Fed’s “surprise” hike in its discount rate.Following a sharp overnight sell-off in Asia and solid gains in Europe, major U.S. averages were up
Charles Ortel of Newport Value Partners has been outspoken about his bearishness on GE and even the future of American capitalism itself. As detailed in the accompanying clip, Ortel remains muted on the long-term case for America. Heading into 2010, many
A year after President Obama signed the stimulus bill into law, a debate still rages as to whether it was a success or just more evidence of Washington’s wasteful spending and political pork barreling. The White House says the $787 billion package p
From The Business Insider , Feb. 19, 2010: Paul Krugman bangs on the healthcare reform drum again, citing the appalling rate increases by health insurers in California.Individual rates that are already sky-high will jump by an astounding 39% this year, he
With America facing $1 trillion annual deficits and debt-to-GDP ratios on par with those of Europe’s so-called PIGS, some are asking what was once unthinkable:Is the U.S. at risk of defaulting on its debt? Earlier this week, Nobel-prize
Running the gamut from “bloodied” private equity firms to an oversubscribed Man Infra initial public offering, stories from today show the IPO market is on shaky ground and, as always, finding the right valuation is vitally important.
IPO stories from the Web:
Bloodied buyout firms sit tight for IPO return (Reuters)
“Private equity firms are putting flotation candidates back in the box after receiving knock backs from angry fund managers, and will try again in a couple of years when they hope the market will be more receptive,” reports Reuters.
Mega IPO of AIG’s AIA unit faces headwinds (Reuters)
“For handlers of AIG’s massive IPO of its Asian life insurance unit, getting investors to recognize the name and the size of the business is the easy part,” reports Reuters
No IPO in 2010, Yelp Says (WSJ)
“Investors hungry for Yelp shares might have to dine elsewhere for now,” reports the WSJ
Barrick’s African gold IPO will raise quick USD 1bn cash, minimum (Mineweb)
“While a good number of reasons have been given for listing African Barrick Gold, it may be a sign that Barrick itself has become too big,” reports Mineweb
Barrick Gold $3.7bn African spin-off looks to join FTSE 100 (Telegraph)
“Investors are crawling over me to buy shares in mining companies at the moment,” John Meyer, head of mining at broker Fairfax told the Telegraph.
Man Infra IPO subscribed; should you invest? (Moneycontrol.com)
“Experts and brokerages views were mixed on this IPO. Investment Advisor, SP Tulsian said the issue looked expensive while Manish Bhatt of Prabhudas Lilladher said one could subscribe,” reports Moneycontrol.com
Highlights from the Thomson Reuters Investment Banking Scorecard:
Global Follow-On Offerings Up 81%
Global follow-on offerings total $48.7 billion for year-to-date 2010, an increase of 81% compared to the same time last year. Issuers in Japan and the United States account for nearly 47% of all year-to-date secondary offerings with $12.1 billion and $10.7 billion, respectively.
Offerings in the financial and energy & power sectors account for a combined 67% of global activity this year. European follow-on activity is up more than four times last year’s totals, bolstered by $4.3 billion in rights offerings, which account for 36% of European follow-on activity this year.
Cross Border M&A Up 79% over 2009
Cross border M&A totals $84.5 billion for year-to-date 2010, a 79% increase over the same period last year. By number of deals, cross border transactions are up just 6% for the year.
This week’s $10.7 billion bid for Zain Africa by India-based telecom provider Bharti Airtel and Norwegian fertilizer producer Yara International’s proposed acquisition of US-based Terra Industries contributed to the cross-border total, which accounts for 32% of worldwide activity, compared to 24% last year at this time.
Real Estate Accounts for 10% of Worldwide M&A
Simon Property Group’s nearly $10 billion offer to purchase General Growth Properties out of bankruptcy brings the total of real estate M&A for year-to-date 2010 to $25.7 billion, more than double last year’s total. Globally, the transaction ranks as the sixth largest real estate M&A transaction since records began in 1980.
United States target real estate transactions total $11.2 billion, or 43% of the worldwide total this year. There have been 85 bankruptcy-related M&A deal this year, compared to 43 at this time last year.