GM, Chrysler Merger Could Cost 74,000 Jobs ·
Grant Thornton estimated in a report Thursday that 74,000 employees could lose their jobs if General Motors and Chrysler receive financing approval for a merger. The accounting firm also said half of Chrysler's plants could be shuttered. (Bloomberg)
October 30, 2008
Mergers and Acquisitions
Treasury Considers TARP Expansion For Non-Public Banks ·
U.S. Treasury officials are reportedly discussing plans to expand the $700 billion Troubled Asset Relief Program to include non-publicly traded banks, which have expressed fears in recent days that the program encourages consolidation of the banking sector at their expense. (WSJ)
Keller: A New Breed of Sovereign Wealth Fund? [ANALYSIS] ·
Brett Keller of the Oxford International Review argues that French President Nicolas Sarkozy's latest proposal to establish a sovereign wealth fund to protect European industries from foreign acquisition represents an entirely new brand of economic isolationism. (Oxford International Review)
Merrill Advisors “Insulted” By Retention Packages ·
Merrill Lynch employees are reportedly "insulted" by retention packages unveiled by Bank of America, which is pushing to close a $50 billion acquisition of the brokerage. Still, advisors could face litigation if they leave with clients because Bank of America did not sign the 2004 Protocol for Broker Recruiting. (CNBC)
Chrysler, GM Explore TARP Aid For Merger ·
U.S. lawmakers are considering using the $700 billion Troubled Asset Relief Program to buy troubled auto loans from General Motors and Chrysler's financing arms, GMAC and Chrysler Financial, so that Chrysler's owner Cerberus can redirect capital towards a potential cost-saving merger. (WSJ)
Goldman Sought Merger Talks With Citi ·
Goldman Sachs’ CEO Lloyd Blankfein reportedly contacted Citigroup's CEO Vikram Pandit in September to discuss a potential merger at the suggestion of U.S. regulators. Pandit immediately rejected the proposition, which came days after Goldman received federal approval to convert into a commercial bank. (FT)
A Silver Lining For Private Equity [OPINION] ·
Jon Henes of Kirkland & Ellis' restructuring group contends that the financial crisis is a lucrative opportunity for private equity firms to acquire distressed companies while incumbent lenders - banks and hedge funds- deleverage. (CNBC)
PNC To Acquire National City, Join Treasury Program ·
PNC Financial said Friday it will acquire National City in a $5.58 billion cash-and-stock deal after bad real-estate loans crippled the Ohio-based bank. Separately, PNC unveiled plans to sell $7.7 billion in preferred stock and warrants via the U.S. Treasury's new bank recapitalization program. (WSJ)
Cerberus Seeks “Meaningful” Control In GM-Chrysler Combo ·
Cerberus is reportedly looking to retain a "meaningful stake" in the company that could potentially emerge from a Chrysler tie-up with General Motors. The private-equity firm, which owns an 80% stake in Chrysler, is also likely to push for a management shake-up at General Motors. (WSJ)
J.P. Morgan Executives Receive Death Threats ·
J.P. Morgan Chase executives including CEO Jamie Dimon have reportedly received death threats accusing their bank of stealing Washington Mutual. The letters, which bear a Texas postmark, threaten a series of attacks similar to the 1995 Oklahoma City bombing. (The Times)
Sarkozy To Create Fund To Protect French Companies ·
French President Nicolas Sarkozy announced Thursday that France will create a sovereign wealth fund to "massively intervene" each time "strategic" domestic companies need shareholder equity. On Wednesday, he proposed European nations shield companies pressured by the financial crisis from foreign acquisitions. (Bloomberg)
Levitt: U.S. Must Merge SEC, CFTC [OPINION] ·
Arthur Levitt, former chairman of the Securities and Exchange Commission, argues that the U.S. should remedy the most "antiquated" and "dangerous" flaw in its regulatory structure by merging the SEC with the Commodity Futures Trading Commission. (WSJ)
GM Seeks Massive Buffett-Style Capital Injection ·
General Motors is reportedly seeking a sizeable capital injection, similar to Warren Buffett's recent investments in General Electric and Goldman Sachs, as a possible alternative to a merger deal with Chrysler. However, analysts remain unconvinced private equity firms will provide assistance. (FT)
Kerkorian Unloads Portion of Ford Stake ·
Financier Kirk Kerkorian, the largest private investor in Ford Motor, revealed Tuesday he sold 7.3 million shares in the automaker and will consider unwinding his remaining 6% stake. Kerkorian sold the shares for roughly $2.43 a share, nearly a 60% loss. (CNNMoney)
Bove: Merrill Lynch May Cut 10,000 Jobs [ANALYSIS] ·
Ladenburg Thalmann analyst Richard Bove speculated Tuesday that Merrill Lynch may eliminate 10,000 jobs, or 6% of its headcount, after Bank of America completes its $50 billion acquisition of the firm. Bove estimates Merrill still has to write-down another $30 billion in toxic securities. (Bloomberg)