Private Equity

  • February 27, 2015

    $118M Rennert Verdict Serves As Costly Cautionary Tale

    The jury verdict Friday that found Ira Rennert and his firm liable for $118 million from Magnesium Corp. of America’s 2001 bankruptcy stands as a stark warning for insiders to tread carefully when extracting money from a company, lest they land on a particularly pricey hook if it ends up insolvent, experts said.

  • February 27, 2015

    SEC’s $300M Wyly Judgment Is Only Half The Battle

    The first stage of the U.S. Securities and Exchange Commission’s hard-fought battle against a pair of Texas tycoons came to a close Thursday when a New York federal judge imposed a nearly $300 million judgment against Sam Wyly and the estate of his late brother Charles Wyly, but a new front now opens as the agency looks to collect on the tab amid likely appeals and a bankruptcy proceeding.

  • February 27, 2015

    Public Cos. Fill Week’s IPO Void With Follow-On Offerings

    Not a single company launched an initial public offering during the final week of February, but already-public companies filled the void with nearly $5.2 billion worth of follow-on offerings priced, as a handful of drugmakers targeted capital for operations and acquisitions and a retailer charted an exit for its private equity backers.

  • February 27, 2015

    Kleiner Men Dished About Sex, Porn On Work Trip, Jury Told

    Interim Reddit CEO Ellen Pao told Kleiner Perkins Caufield & Byers LLP top brass that she'd been subjected to discussions about porn stars and male colleagues' sexual preferences during a work trip, according to emails shown to a California jury Friday in Pao's gender-discrimination trial against the venture capital giant.

  • February 27, 2015

    Skadden Blasts 'Vexatious' Radnor Founder's Fraud Claims

    Skadden Arps Slate Meagher & Flom LLP and hedge fund Tennenbaum Capital Partners LLC on Thursday pushed back against fraud accusations by the founder of defunct packaging company Radnor Holdings Corp., with the law firm calling him a “serial and vexatious litigant” whose actions are sanctionable.

  • February 27, 2015

    Real Estate Rumor Mill: Tishman, Starwood, Panasonic

    Tishman Speyer is said to have scored $1.4 billion in financing for a New York tower, while Starwood Capital has reportedly inked $500 million in financing for a hotel portfolio and Panasonic is said to be leasing 49,000 square feet outside Chicago.

  • February 27, 2015

    February M&A Confirms Big Pharma Deals Still In Vogue

    Big Pharma bookended February deal-making with two of the biggest transactions of 2015 to date, extending an impressive run in the marketplace that traces back a full year and shows few signs of stopping.

  • February 27, 2015

    Pulling Up Stakes: Dickstein, Bryan Cave, Seyfarth Shaw

    In this week's roundup of deal makers on the move, Dickstein Shapiro LLP landed a pair of M&A and private equity pros for its New York and Connecticut outposts, Bryan Cave LLP picked up a financial services ace in Denver and Seyfarth Shaw LLP nabbed a financing and transactions partner in Houston.

  • February 27, 2015

    Revolving-Door Roundup: Paul Weiss, DLA Piper, Cadwalader

    This month's roundup of attorney moves between the public and private spheres includes two U.S. attorneys landing partnerships at major firms — the second and third this year, for those keeping count — and a New York assistant U.S. attorney who secured a senior counsel position at Bill Ackman's private equity firm.

  • February 27, 2015

    Deals Rumor Mill: Samsom, NY Daily News, Banco BPI

    Oil and natural gas company Samson Resources Co. has hired the restructuring teams of Kirkland & Ellis LLP and Blackstone Group to help advise during what has become a messy restructuring, while the New York Daily News may be on the chopping block after being approached recently by a potential buyer.

  • February 27, 2015

    CyberArk's VC Backers Prepare For $200M Secondary Offering

    CyberArk Software Inc.’s venture capital backers registered Friday to unload up to $200 million worth of shares in a proposed secondary offering as they look to trim their stake in the Israeli information technology security company.

  • February 27, 2015

    Rennert Hit With $118M Verdict Over MagCorp Bankruptcy

    A New York federal jury found Ira Rennert liable on Friday for contributing to Magnesium Corp. of America’s 2001 bankruptcy, ordering the billionaire industrialist and his firm to pay $118 million in damages for taking shareholder dividends that allegedly left MagCorp too weak to survive.

  • February 27, 2015

    Thai Union Eyes $400M Offering To Fund Bumble Bee Buy

    Thai Union Frozen Products PCL is planning to raise $400 million by offering new shares to existing shareholders, saying it will use the money to help finance acquisitions including its pending agreement to purchase private equity-backed Bumble Bee Foods LLC for $1.5 billion.

  • February 27, 2015

    Malin Biotech IPO To Raise Up To $365M For Acquisitions

    Malin — an Irish company formed to acquire assets in the fast-growing life sciences industry — is planning an initial public offering on the London Stock Exchange that would raise €275 million to €325 million ($308.4 million to $364.4 million), according to a notice filed on Friday.

  • February 26, 2015

    Don't Miss It: Hot Deals & Firms We're Following This Week

    With so much M&A news this week, you may not have seen some announced deals involving several law firms like Jones Day, Bryan Cave, Wachtell Lipton and others. Here, Law360 takes a look at the ones you might have missed.

  • February 26, 2015

    Kleiner Sidelined Pao After Harassment Report, Jury Told

    Interim Reddit CEO Ellen Pao was separated from her investment work with RPX Corp. after reporting that a Kleiner Perkins Caufield & Byers LLC senior partner sexually harassed her, according to emails and other evidence revealed in California court Thursday in Pao's gender discrimination trial against the venture capital titan.

  • February 26, 2015

    Deals Rumor Mill: Enel, Atkins, Terra Firma

    Italy has reportedly agreed to sell a 5.74 percent stake in state-owned energy utility Enel for $2.5 billion, while Atkins Nutritional, creator of the low-carb diet program, is on the chopping block and could fetch upwards of $1 billion.

  • February 26, 2015

    Mayer Brown Adds Ex-Morgan Lewis Atty To Securities Group

    Mayer Brown LLP has deepened its corporate bench by nabbing a mergers and acquisitions and private equity pro from Morgan Lewis & Bockius LLP, the firm announced Tuesday.

  • February 26, 2015

    LightSquared Stockholder Floats Rival Ch. 11 Plan

    LightSquared Inc. creditor and preferred stockholder Solus Alternative Asset Management LP floated a rival Chapter 11 plan Thursday along with $742 million in debtor-in-possession financing to compete with the debtor’s reorganization strategy supported by its controlling stakeholder, Phillip Falcone’s Harbinger Capital Partners LLC.

  • February 26, 2015

    TPG Bites Off $146M Stake In Indian Hospital Operator

    Private equity giant TPG Capital said Thursday it will pick up a “sizable minority stake” in Indian hospital operator Manipal Health Enterprises Ltd. in a $146 million deal, its latest step to deepen its business in the country.

Expert Analysis

  • 2 Delaware Cases May Slow Appraisal Arbitrage Momentum

    Mark D. Gerstein

    Two appraisal cases out of Delaware involving CKx Inc. and mark an important judicial response to the recent spike in “appraisal arbitrage,” which may effectively subdue the rise of this practice. The scope of these decisions, however, should not be overstated, say attorneys with Latham & Watkins LLP.

  • Oil Cos. Are Exploring Alternative Investment Financing

    Omar Samji

    Oil companies in need of funding for capital expenditures will increasingly find alternative financing structures attractive as traditional sources of credit tighten. Royalty-based investments may become even more popular than in the past due to their flexible structure, ability to target specific assets and potential bankruptcy advantages to investors, say attorneys at Jones Day.

  • Behavioral Health And Other Rumblings From JPMorgan 2015

    Richard S. Grant

    After conversations with numerous health care private equity funds and lenders at the JPMorgan Healthcare Conference, we can report that the behavioral health sector continues to generate a great deal of buzz. In addition to some of the widely reported multifacility large investments, there is much more interest from funds in serial acquisitions of discrete facilities or operations, say attorneys with McGuireWoods LLP.

  • How Activists Use Lack Of Information To Achieve Results

    Patrick Tucker

    Emboldened by an enormous influx of funds and several high-profile “wins” over the last several years, activists have increasingly honed their communications strategies, making unequivocally incomplete statements designed to shift public perception broadly while also gaining tactical victories against targeted companies, says Patrick Tucker, senior vice president at financial communications firm The Abernathy MacGregor Group.

  • 2nd Circ. Lays Out New Rules For Restitution

    Harry Sandick

    The Second Circuit's recent ruling in U.S. v. Cuti seems to place a notable limitation on the ability of a victim of white collar crime to recover expenses incurred in the course of investigating and reporting the defendant’s criminal activity. This decision does not take into account how internal investigations are typically conducted when the allegations concern wrongdoing by senior management, say attorneys with Patterson Belkna... (continued)

  • This Week In Congress: Avoiding A DHS Funding Showdown

    Richard A. Hertling

    One major change in the debate over U.S. Department of Homeland Security funding — which expires this Friday — is that a Texas federal district judge has issued an injunction against the Obama administration’s immigration policy, essentially putting it on hold. This may be an opportunity for the Senate to avoid the policy riders and pass a clean funding bill, say Richard Hertling and Kaitlyn McClure of Covington & Burling LLP.

  • In-House Counsel's Dirty 'Little' Secret: Data Leakage

    Jennifer Topper

    Not every data breach is a massive headline-grabbing theft of consumer credit card information. As significant as these events may seem, the more dangerous and prevalent threats are the least visible — occurring through "data leakage." Put simply, this is raw meat awaiting a strike by the plaintiff’s bar, says legal industry adviser Jennifer Topper.

  • When Negligence, However Gross, Is Not Enough

    James Smith

    A recent decision in a breach of duty case against the directors of failed fund Weavering Macro Fixed Income Fund Ltd. clarifies that there is indeed a distinction between gross negligence and willful neglect in the Cayman Islands. If investors expect a director to be personally liable for gross negligence, they will need to ensure that the articles of association do not provide for exculpation in such circumstances, says James Smi... (continued)

  • FERC's New Merger Review Proposal And Its Impact

    Mark C. Williams

    A proposed policy would significantly expand the scope of the ratepayer protection commitments that must be offered by electric utilities seeking Federal Energy Regulatory Commission approval for mergers and, as a result, may materially alter the financial calculus for companies considering those transactions. The proposed policy may also make recovery from bankruptcy even more challenging and uncertain, say attorneys with Morgan L... (continued)

  • This Week In Congress: DHS Funding Looms In Recess

    Richard A. Hertling

    With the House and Senate in recess until Feb. 23, a number of issues compete for priority upon their return — including a possible vote to overturn President Obama’s anticipated Keystone Pipeline veto, nominations for U.S. Attorney General and head of the USPTO, the FCC's net neutrality rules, and an imminent deadline for Department of Homeland Security funding, say Richard Hertling and Kaitlyn McClure of Covington & Burling LLP.