Dell suitors steer away amid PC sales slump (TimesOfIndia)
Buyout specialist The Blackstone Group L.P. (NYSE:BX) is dropping its effort to acquire Dell Inc. (NASDAQ:DELL), and billionaire investor Carl Icahn is reportedly unlikely to follow through on his preliminary acquisition offer, as suitors digest studies showing a staggering decline in PC sales. The Wall Street Journal said Icahn will now likely wait to see if shareholders approve a February deal for the company to be taken private by a group that includes founder and CEO Michael Dell for $24.4 billion. The newspaper, citing an unnamed person familiar with Icahn’s thinking, said that if the deal is rejected, Icahn may pursue a hostile takeover.
Blackstone’s withdrawal is ominous sign for Dell’s prospects (BizJournals)
It’s the software, stupid — and services too. Private equity firm The Blackstone Group L.P. (NYSE:BX)’s withdrawal in the leveraged buyout of Dell Inc. (NASDAQ:DELL) shareholders combined with Microsoft Corporation (NASDAQ:MSFT)’s strong quarterly earnings report underscored just how precarious Dell’s financial future really is. CEO Michael Dell has indicated that he wants to ramp up the Round Rock-based company’s diversification and restructuring process out of Wall Street’s glare. The Blackstone Group L.P. (NYSE:BX) initially wanted to outbid Dell for his own company but a glimpse at Dell Inc. (NASDAQ:DELL) books apparently provided the firm with a sobering reality check. It’s not worth the bother. The plummeting demand for Dell’s computers and servers has cut into profits and dimmed its future so it’s not even a good buy at a bargain price.
With Blackstone Out, It’s Icahn Vs. Dell (Fool)
A couple of weeks ago, up-for-sale PC purveyor Dell Inc. (NASDAQ:DELL) offered Carl Icahn and Icahn Enterprises LP (NASDAQ:IEP) $25 million to play nice in its bid for the company. The move was an olive branch from Dell’s board, wisely trying to avoid a proxy battle involving the company’s already frustrated shareholders and other potential suitors, including founder Michael Dell. Though he didn’t take the bribe, Icahn and Dell reached an agreement — a sort of Rules of Engagement for the buyout procedure. The deal should protect investors, while still enabling the board to shop the company to the best bidder. Here’s what you need to know. …Carl Icahn is well known for pushing corporate board buttons to get what he wants — it’s kind of how he built his empire. The investor builds formidable stakes in his target companies to influence other shareholders and, ultimately, the company decision makers.
SAC of trouble for Cohen from ex-wife (NYPost)
The ex-wife of hedge fund honcho Steve Cohen is turning up the heat in her bitter legal battle with her former husband. Patricia Cohen is talking with trial lawyers about taking on her case after a New York appeals court revived her lawsuit accusing her ex of cheating her out of millions during their divorce more than two decades ago, The Post has learned. No decisions have been made, but she is “evaluating how to go forward,” said a person close to the case. Patricia claims that her billionaire ex — whose wealth is estimated at nearly $9 billion — hid $5.5 million he received in a settlement over a soured $8.7 million real-estate deal during their divorce proceedings. She is seeking damages of $8.25 million.
Has the Art Market Gone Medieval? (HuffingtonPost)
On the 26th of March, several news sources reported that casino magnate Steve Wynn had sold Picasso’s 1932 painting “Le Rêve” to hedge fund owner Steven Cohen for $155 million dollars. Mr. Cohen apparently felt like doing some art shopping and image burnishing after having paid a fine of $614 million to settle accusations of insider trading without any admission of guilt. Cohen had been coveting “Le Rêve” for some time, but a previous sale agreement had fallen through after Steve Wynn, who suffers from the degenerative eye disease retinitis pigmentosa, accidentally tore a small hole in the work with his elbow in 2006. Mr. Wynn, who has a reputation as boss who treats his employees generously, said something quite remarkable a few hours after the painting was damaged: “My feeling was, it’s a picture, it’s my picture, we’ll fix it. Nobody got sick or died.”
SAC’s Cohen Buys West Village Properties (Finalternatives)
SAC Capital Advisors founder Steven Cohen is in the midst of a frenzied real-estate deal-making spree. The hedge fund manager recently bought a $60 million East Hampton home down the block from his current Long Island getaway, and listed his Midtown Manhattan duplex for $115 million. Now comes word that he’s bought the site of a failed hotel project in the West Village for $38.8 million. The site, 145 Perry Street, at the corner of Washington Street, currently houses a freight-loading station and a two-story row of storefronts along Washington. But Cohen hasn’t stopped there, buying an apartment at the Abingdon, a recently-renovated apartment building a few blocks to the north and east as he works on his Perry Street plans, the New York Post reports.
Steve Cohen Is Pitching To New Investors At Yankee Stadium Today (BusinessInsider)
Reuters/ Steve Marcus Billionaire hedge fund manager Steve Cohen, who runs SAC Capital, will be making an appearance at Yankee Stadium today, the New York Post’s Michelle Celarier reports. According to the Post, Cohen will be attending the annual Goldman Sachs Group, Inc. (NYSE:GS) U.S. Hedge Fund Symposium, a cap intro event put on by that bank’s prime brokerage division. Cohen, who owns a stake in the New York Mets, will be pitching perspective investors at the stadium along with other hedge fund hot-shots. He was at the event last year.
