We start the new year with a trickle of news.
Jan. 1 (Bloomberg) -- PHH Corp., the New Jersey-based mortgage and vehicle leasing company, scrapped its $1.8 billion sale to General Electric Co. and Blackstone Group LP because Blackstone failed to get financing for the transaction.
And who is the Blackstone Group?
We are a world leader in private equity investing, having managed five general private equity funds as well as one specialized fund focusing on media and communications-related investments. We established this business in 1987. We pursue transactions throughout the world, including not only typical leveraged buyout acquisitions of seasoned companies but also transactions involving start-up businesses in established industries, turnarounds, minority investments, corporate partnerships and industry consolidations.
These people failed to get financing? We can only hope telling the truth wasn't one of their resolutions because it would be far worse if they are telling the truth.
Update: Save the Pig™!
19 comments:
a very first & murst new year greeting
Doesn't seem to odd since PHH had a market cap of just $940 million as of close yesterday. Why would anyone pay twice as much for a money losing company?
The 1yr Chart tells the tale.
Gee, anyone want to guess when the deal at $31 was announced. At the time in July just before a the SHTF that was a small premium. And don't all those idijits who bought the rumor feel stupid. See the volume spike? So, the answer is GE and Blackstone didn't pay twice as much, instead they lied and claimed they couldn't find the funding.
Blackstone is a typical maggot grifter story. Gut the company, load it up with debt, take huge bonuses and stock options, then unload it on the stupid (corrupt) pension fund managers and Asians. The system works!
Edgar
Actually, they took their bonuses right after the money first flowed in.
That way it didn't have a chance to lose money.
I am about to order a new suv tomorrow. Amazed how high the rates are for good credit on short loans. Gonna get very tough on those tapped out with rising mortgages. And for large purchase items like cars/boats/homes
h.
"Blackstone didn't pay twice as much, instead they lied and claimed they couldn't find the funding"
What's surprising is how transparent the lie is.
The Chinese investment in BX = Mitsubishi investment in Rockfeller Center.
Blackstone is a typical maggot grifter story.
Indeed. Them and Cerberus. Great choice for a name, Feinberg. Why not call your next company "Cujo"?
I always thought a private equity stripper should call itself Charon. Then they could also charge one last fee to escort the companies they kill to the underworld.
Indeed. Them and Cerberus.
Corporate fascist deluxe there.
On October 19, 2006, John W. Snow, President George W. Bush's second United States Secretary of the Treasury, was named chairman of Cerberus.
Cerberus was recently involved in controversy surrounding its contributions to Republican Congressman Jerry Lewis. MCI, a company owned by Cerberus, had a $1 billion contract to create the Navy/Marine computer network. However, the Defense Appropriations subcommittee released a report critical of MCI after receiving complaints about cost overruns and bad management. In response to this report, the committee had proposed to cut the MCI contract by 10%. In June 2003, Lewis, the head of the Defense Appropriations subcommittee, received over $110,000 in contribution from Cerberus. Shortly thereafter, Lewis decided to preserve full funding for the $1 billion contract. In 2005, Lewis was elected as Chairman of the House Appropriations Committee. He acknowledged that the fundraising efforts of Cerberus "played a very significant role" in winning the post. Before her dismissal, US Attorney Carol Lam began an investigation of Lewis's contributors in 2006.
I hate Dan Quayle too! Plus I'm out of kitty litter due to Safeway.com's inability to provide key elements.
BTW, how many of you guyz would own up to being Ron Paul enthusiasts? While I appreciate certain elements of libertarianism, I’m concerned when someone who is running for president and seems to be more intelligent than the W mishap considers the theory of evolution nothing more than a theory. Check out silkworms and dogs. Evolution happens whether you believe in it or not.
Luba told me that she hates SUVs.
Evolution needs breeders
Of all the stupid comments I leave here, I'm surprised the breeder one is remembered - perhaps it was the caps...
I am a Ron Paul enthusiast. If he stood a chance I might examine him a little more closely, but as a protest against the clowns who are brown nosing the christian right and arguing that invading other countries is a good thing, he is great.
@serinitis,
I agree that Iraq was a national disaster, but he kind of sounds like the Christian Right when he denies evolution.
Also, I'd love to feel as super excited as so many bloggers do about Ron Paul or anything else, but I don't.
Here is why PHH is pushing to dissolve the sale.
From cnn/money article today:
PHH Corp., pursuant to the terms of the merger agreement, has requested payment of $50 million from an affiliate of The Blackstone Group as a termination fee.
See, this is the corporate version on not getting the engagement ring back from your fiance.
As for Ron Paul, screw the ludlite. Why you ask?
Well I live in New Hampshire. I get a LOT of phone calls from Halloween on from the folks running to be "The Prez".
I try to be nice with the 7-8 calls every evening during dinner.
Ron Paul's group constantly calls with a prerecored message. Some pre-recorded voice says hold on for a message prior to the voice of RP.
And the system is so scratchy you swear they have a pre-Carter calling system some dude hacked up from a Radio Shack kit.
Anyways, when that organization calls the same home number 4 times in 3 hours, it shows they are not tech savy nor organized. Both important qualifications for this year's battle.
Ron: Get the guy who hung all the DNC phone lines during a NH fund raiser a couple years ago. He knows electronics and should be out of jail by now.
h.
@Akubi,
The probability is Ron Paul is as wacko as Ross Perot (who I also supported). The advantage of supporting hopeless candidates is you can concentrate on their positives and ignore their negatives. Ron's advantages are his honesty about foreign entanglements and that he would seriously try to be fiscally responsible. I don't believe he is a fundamentalist. The fundies certainly are not supporting him.
I believe their are two groups of people who are enthusiastic about him, nut cases and protest votes. As a protesting nut case I am doubly enthused and I hope he makes a 3rd party run.
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