Tag Archives: equity

Top GFI staff seek exit clause if rival BGC bid succeeds

More than 100 senior employees at GFI Group, the US interdealer broker, are seeking changes to their contracts that would allow them to leave the company if a hostile takeover bid by rival BGC Partners is successful.

Dozens of the GFI’s top desk heads and producers have expressed their concern to management in recent months about a BGC purchase, said two people familiar with the situation.

Howard Lutnick, BGC chief executive

Many are worried about working within BGC’s corporate culture, which incentivises employees via a partnership structure unique in the industry and could lead to bonus cuts.

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8-K Filing Shows PCM Enters Agreement With Sarcom Properties To Buy Property For $6.569M

On December 23, 2014, PCM, Inc. (the “Buyer”) entered into an agreement with Sarcom Properties, Inc. (the “Seller”), an unaffiliated third party, to buy certain real property from the Seller for a total cash sales price of $6,569,500 (the “Agreement”). The real property is located at 8337 Green Meadows Drive N., Lewis Center, Ohio and includes approximately 12.4 acres of land together with a building for office and warehouse space of approximately 144,000 square feet (the “Building”). One of our other subsidiaries is currently the tenant of the Building and it is currently being used as our second headquarters, sales office and distribution center. We expect to finance around 70% of the purchase price with a long-term note.

The Buyer is entitled to terminate the Agreement for any reason while it conducts due diligence related to the property during a 30 day period from December 23, 2014 (the “Due Diligence Period”). In addition, the Buyer may extend the Due Diligence Period for further environmental due diligence for an additional 30 days if it determines in its sole discretion that further environmental due diligence is required. However, the Buyer and Seller have agreed to use best efforts to close the transaction no later than January 31, 2015. The Agreement also contains other customary closing conditions to the purchase and sale of the real property.

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Good year for cross-border M&A in the Middle East

“The Middle East has seen a very robust year in terms of both inbound and outbound M&A activity,” said Tom Thraya, UAE Head of Corporate/M&A for Baker&McKenzie Habib Al Mulla.”The increasing trend looks set to continue in 2015, with stable markets such as the UAE and Saudi Arabia remaining attractive to international investors. Factors such as the UAE’s increasing importance as a business hub for the Middle East and Africa, and the opening up of Saudi Arabia’s stock exchange for foreign investors in 2015, are fueling optimism for a further acceleration of M&A activity in the region.”

Data from Thomson Reuters reveals that as of 14 December 2014, the total value of Middle Eastinbound M&A activity has already surpassed 2013, increasing by 53 percent to reach USD9.5 billion. In terms of deal value, inbound acquisitions were driven by the US (49.8 percent), followed by China (10.3 percent) and Switzerland (7.1 percent). The US had the most number of transactions with 43 deals, followed by India and China, both with 8 deals.

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U.K. M&A Deals: What a U.S. Buyer Should Expect

This article explores the significant differences between market deal terms in the U.S. and U.K., with an additional focus on what buyers should expect when a business is being sold by a U.K. private equity fund.

Typically, U.S. private stock deals are executed on a ‘cash-free, debt-free’ basis, incorporating upward and downward adjustments to the agreed-to purchase price based on post-closing metrics.

Conversely, the ‘locked box’ method is gaining prevalence in the U.K. This approach involves an equity price being established using a historic set of accounts which the buyer has no ability to adjust after closing. If changes to these accounts occur, the buyer’s only right of claim is under contract.

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Deal Professionals Predict Financial Services M&A Will Soar

Dealmakers polled in mid-November expect M&A to expand significantly in the financial services, insurance, and real estate (FIRE) sector over the coming year, according to Mergers & Acquisitions’ Mid-Market Pulse (MMP), a forward-looking sentiment indicator derived from monthly surveys of approximately 250 executives published in partnership with McGladrey LLP.

The 12-month score of 87.2 for FIRE was nearly 17.5 points higher than the comparable score for overall M&A. It was also the highest 12-month score of the six fast-growth industries measured by the MMP – ahead of health care; technology, media and telecommunications; manufacuring; consumer goods and retail; and energy. Short-term expectations for the sector were also high. The three-month composite score of 79.3 for FIRE beat the overall market score of 71.0 but was lower than the three-month score of 84.1 for health care.

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Mergermarket in FTSE Global Markets

Lack of mega deals weighs on UK M&A figures M&A activity targeting the United Kingdom stood at £37.5bn in the first half of 2014, the lowest half-year value since 2010 (£37bn) and a 12.5% drop from the first six months of last year.

M&A activity targeting the United Kingdom stood at £37.5bn in the first half of 2014, the lowest half-year value since 2010 (£37bn) and a 12.5% drop from the first six months of last year.

A lack of large transactions in the country pulled the UK M&A value down this semester, according to MergerMarket, with only one mega-deal (valued above US$5bn) announced in the region so far this year – the £8.6bn acquisition of the Oncology division of GlaxoSmithKline by its German peer Novartis.

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Honduras Votes for President as Drug Violence Crimps Growth

According to Bloomberg,

Hondurans choose a new president and Congress today as the world’s highest rate of violent crime crimps economic growth in the country four years after a military coup ousted former President Manuel Zelaya.

Polls show the race in a statistical tie between the ruling National Party’s Juan Orlando Hernandez, 45, and Zelaya’s wife, Xiomara Castro, who heads the newly formed Libre party. Both candidates have vowed to improve security after a surge in murders fueled by drug gangs linked to Mexican cartels. Polls opened at 7 a.m. local time and will close at 5 p.m.

Castro, 54, is seeking to break a century-long grip on the presidential palace by the country’s two traditional parties. She has tapped into frustration from the coup, during which she led protests to have her husband returned from exile. Hernandez led the national assembly when Zelaya was ousted for backing a referendum to change the constitution.

In the eight-candidate race, no party is expected to win a majority in the legislature.

“It’s going to be difficult for whoever wins to govern,” said Geoff Thale, director of the Washington Office on Latin America.

Bordered by Nicaragua, El Salvador and Guatemala, Honduras has a murder rate of more than 80 per 100,000 inhabitants, the highest in the world, according to the United Nations. The U.S. State Department estimated that last year about 90 percent of all cocaine smuggling flights departing South America for the U.S. first land in Honduras, where illegal airstrips abound in poorly patrolled parts of the country.

International Observers

The government plans to deploy 14,000 soldiers and police to safeguard the process, while almost 750 international observers will monitor the vote. Current President Porfirio Lobo is barred from seeking re-election and whoever gets the most votes wins. There is no second round.

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