In the first session of the week, a flurry of M&A news offered a welcome distraction from the dire economic consequences of the ever sliding price of crude oil and the run on commodities, but the Footsie nevertheless closed at a two-week low.
Vodafone fell 6.75p to 227.2p on unconfirmed reports the telecoms group is considering acquiring Liberty Media.
However, Balfour Beatty was in demand after receiving a £1billion approach for its lucrative Public Private Partnership division from the John Laing Infrastructure Fund, which intends to finance the offer with a major rights issue. Shares were up 7.8p to 191.1p.
Posted in 2015 Recap, Breaking news, Commodities, Corporate Finance, emerging market, equity capital market, Equity Markets, equity trading, Events, M&A, Mergers and Acquisitions
Tagged Asia-focused Cathay Pacific, Balfour Beatty, British Airways, Citigroup, crude- oil, David Madden, FTSE, Golden Networking, JKX Oil & Gas, JP Morgan, Liberty Media, Modern Finance Report, OPEC, PetroCeltic, RBC, Saudi Arabia, SkyePharma, ucrative Public Private Partnership division
Daniel Bonventre (Bloomberg)
According to Bloomberg,
A former JPMorgan Chase & Co. (JPM) banker who managed Bernard Madoff’s account said the con man was on track to receive a $200 million loan less than a month before his arrest if the request hadn’t been dropped.
Daniel Bonventre, one of five ex-Madoff employees on trial for allegedly aiding the fraud, asked JPMorgan in November 2008 to borrow twice Madoff’s credit limit of $100 million, with U.S. Treasuries as collateral, Mark Doctoroff, who left the bank last year, testified yesterday in federal court in Manhattan.
“They are doing well financially,” Doctoroff said of Madoff’s securities firm in an e-mail to JPMorgan’s credit department on Nov. 17, 2008. “They are looking at the current market as an opportunity to make investments, true to their value investing style.”
The five former employees are accused of helping Madoff hide his fraud from customers, banks and regulators for years, and getting rich in the process. It’s the first criminal trial stemming from the scheme, which prosecutors say started in the early 1970s and imploded at the peak of the financial crisis.
The loan was part of a last-ditch attempt by Madoff to secure cash as his Ponzi scheme was collapsing and Bonventre’s role in the application process was one of the many examples of his involvement in the fraud, prosecutors have said.
Doctoroff, who was Madoff’s relationship manager at the bank from about February 2008 until Madoff’s arrest in December that year, said he didn’t know at the time Madoff had a formal investment advisory unit — the center of the Ponzi scheme involving fake trades — or that Madoff’s JPMorgan account was used for that business.
Posted in Economy, Equity Markets, Events, Finance, New York
Tagged Bernard Madoff, Daniel Bonventre, Economy, equity, financial markets, investment, investment bank, JP Morgan, JPMorgan, Manhattan, Modern Finance Report, Private Equity
South Korea’s third largest insurer, Kyobo Life Insurance, has made a bid for the country’s fifth largest insurer, ING Life South Korea. (Picture from Associated Press)
Joyce Lee from Reuters reports that Kyobo Life Insurance, South Korea’s third-largest insurer, said on Friday it had made a bid for a controlling stake in ING’s South Korean insurance unit, breathing new life into a delayed deal previously valued at roughly $2 billion.
Kyobo, whose investors include Ontario Teachers’ Pension Plan, Singapore sovereign fund GIC GIC.UL and private equity firm Affinity Equity Partners, is set to compete against the country’s second-largest insurer Hanwha Life Insurance Co Ltd, which is expected to submit its own bid, according to a source with direct knowledge of the matter.
Posted in Economy, Private Equity
Tagged Affinity Equity Partners, GIC GIC.UL, Goldman Sachs, Hanwha Life Insurance Co, ING, ING Groep NV, insurance, JP Morgan, KB Financial Group Inc, Korean won, Kyobo, Life Insurance, M&A, MBK Partners, Private Equity, seoul, Singapore, South Korea, sovereign fund, Teachers' Pension Plan, Tong Yang Life Co Ltd, Vogo Fund