BX - The Blackstone Group Inc.

NYSE - NYSE Delayed Price. Currency in USD
+0.17 (+0.37%)
At close: 4:02PM EDT
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Previous Close45.66
Bid0.00 x 800
Ask0.00 x 3000
Day's Range45.68 - 46.39
52 Week Range26.88 - 47.93
Avg. Volume6,584,862
Market Cap54.827B
Beta (3Y Monthly)1.63
PE Ratio (TTM)18.83
EPS (TTM)2.43
Earnings DateJul 18, 2019
Forward Dividend & Yield1.48 (3.24%)
Ex-Dividend Date2019-04-26
1y Target Est50.45
Trade prices are not sourced from all markets
  • Why Earnings Beat is Less Likely for Blackstone (BX) in Q2
    Zacks19 hours ago

    Why Earnings Beat is Less Likely for Blackstone (BX) in Q2

    Tough operating backdrop is expected to hurt Blackstone's (BX) second-quarter 2019 results to some extent.

  • Energy Transfer Weighs Sale of Rover Pipeline Stake
    Bloomberg22 hours ago

    Energy Transfer Weighs Sale of Rover Pipeline Stake

    (Bloomberg) -- Energy Transfer LP, the U.S. pipeline giant controlled by billionaire Kelcy Warren, is weighing the sale of its 33% stake in a conduit that carries Appalachian natural gas to customers across the Midwest, according to people familiar with the matter.The Dallas-based pipeline operator has hired an adviser to pursue a potential sale of its operated interest in the Rover pipeline, said the people, who asked not to be named because the information isn’t public. The stake could fetch as much as $2.5 billion, one of the people said.No decision has been made and Energy Transfer could opt not to sell, the people said. A representative for the company declined to comment. Energy Transfer rose 0.6% to close at $14.91 a share.Rover is 713 miles (1,148 kilometers) long and can shuttle 3.25 billion cubic feet of gas daily to customers across Ohio and Michigan, and as far away as Ontario. The project was originally expected to cost $4.2 billion and entered full service last year after a series of delays and construction missteps, including the bulldozing of a historic house in Ohio that the company had said it was buying for office space.When the project came online, gas drillers got relief from bottlenecks that had plagued the Marcellus and Utica shale fields in Appalachia, where a production boom aggravated shipping constraints. Rover can handle as much as 10% of total Appalachian gas output.Energy Transfer sold a 32% stake in Rover to funds managed by Blackstone for about $1.57 billion in 2017. Together, Energy Transfer and Blackstone control 65% of Rover through an entity called “HoldCo,” according to a regulatory filing. Traverse Midstream, formed in 2014 by a former affiliate of private equity firm NGP Energy Capital Management, owns the remaining 35%.Proceeds from a sale of the Rover stake could be used by Energy Transfer to make an acquisition. The company is among those looking at a 20% stake in a crude-oil export project in Corpus Christi, Texas, a person familiar with the matter said last month.“We kiss a lot of frogs looking for a prince,” Warren said during a conference call in November. “We are working it hard. I will tell you, though, we are not finding any deals.”To contact the reporters on this story: Rachel Adams-Heard in Houston at radamsheard@bloomberg.net;Kiel Porter in Chicago at kporter17@bloomberg.netTo contact the editors responsible for this story: Simon Casey at scasey4@bloomberg.net, Christine BuurmaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Blackstone Nears Deal for CRH Europe Distribution Arm
    Bloomberg23 hours ago

    Blackstone Nears Deal for CRH Europe Distribution Arm

    (Bloomberg) -- CRH Plc, which counts activist investor Cevian Capital as an investor, agreed to sell its European plumbing and heating distribution business to Blackstone Group Inc. for 1.64 billion euros ($1.9 billion) in cash to create a more focused building-materials group.The business supplying professional builders and home renovators generated sales of 3.7 billion euros and earnings of 155 million euros last year, Dublin-based CRH said in a statement on Tuesday. Bloomberg reported late Monday a deal with the U.S. private equity firm was imminent.The sale marks CRH’s exit from distribution as Chief Executive Officer Albert Manifold steers the company toward higher growth markets including cement. As part of a more sweeping overhaul to generate cash for acquisitions, the CEO spent the “last several months” exploring options for the business, concluding that a sale would generate the most value for shareholders, according to the company.Blackstone beat out other bidders, including Bain Capital and Lone Star Funds, according to people with knowledge of the matter. The distribution business also sells products such as roof tiles and flooring.Shares of CRH gained 0.8% to 29.74 euros as of 8:13 a.m. in Dublin. The transaction will be “well received given the clean sale and the attractive price,” Davy analyst Robert Gardiner wrote in an investor note.(Updates with analyst and share price in last paragraph.)\--With assistance from Jan-Henrik Förster and Dinesh Nair.To contact the reporters on this story: Aaron Kirchfeld in London at akirchfeld@bloomberg.net;Sarah Syed in London at ssyed35@bloomberg.net;Andrew Noël in London at anoel@bloomberg.netTo contact the editors responsible for this story: Aaron Kirchfeld at akirchfeld@bloomberg.net, Tara PatelFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Financial Times23 hours ago

    Blackstone to buy CRH European distribution unit for €1.6bn

    Irish building materials supplier CRH announced it will sell its European distribution business to private equity funds managed by Blackstone. The European business, which supplies roof tiles, sanitary heating and plumbing to a network of builders, will be sold for €1.64bn, including net debt. Proceeds will be used for future acquisitions and to fund the FTSE 100 company’s share buyback programme, according to the company.

  • Reutersyesterday

    UPDATE 2-CRH to exit distribution business in $1.9 bln Blackstone deal

    Irish building materials supplier CRH is selling its underperforming European distribution unit to Blackstone-backed private equity funds for 1.64 billion euros ($1.85 billion), including net debt. With the sale, the Dublin-based company, which provides cement, asphalt and other building materials, would completely exit the distribution business as it tries to improve core profit margins.

  • Financial Timesyesterday

    CRH/Blackstone: set in concrete

    CRH’s largest deal in two years merited only a muted nod of approval from shareholders. Albert Manifold, chief executive of CRH, which is listed in London and rooted in Ireland, has extracted a decent price from the private equity group. Blackstone is paying 11 times enterprise value to ebitda.

  • Bloomberg2 days ago

    Vungle Sells to Blackstone, Ending Unsettling Silicon Valley Saga

    (Bloomberg) -- Mobile ad startup Vungle Inc. is being acquired by private equity funds of Blackstone Group Inc. in a transaction that will handsomely reward the startup’s backers and bring to a close a bizarre episode of Silicon Valley scandal.The transaction is worth about $750 million including cash, according to a person familiar with the situation who asked not to be identified because the details are private. It represents a rich outcome for a startup founded in 2011 that raised less than $30 million in venture backing, including from Alphabet Inc.’s GV, Thomvest Ventures and Crosslink Capital. Vungle’s business, delivering ads to mobile phone users of games and other entertainment, has become highly competitive in recent years. In a press release, Blackstone said Vungle excelled at retaining users across different devices, and worked with customers including Angry Birds maker Rovio Entertainment Oyj, Zynga Inc., Pandora and Microsoft Corp.Vungle’s founding CEO, Zain Jaffer, was fired from the company two years ago after police were called to his house in the middle of the night. Jaffer had hit both his father and his infant child, and was naked while performing a martial arts maneuver on his young son that involved gripping the child between Jaffer’s legs. A prosecutor charged Jaffer with performing a lewd act, child abuse and battery, but later dropped the charges after Jaffer argued the police had misinterpreted the martial arts move as sexual, and that at the time of the incident, he was suffering from a psychotic episode triggered by a cocktail of legally prescribed drugs. Earlier this year, Jaffer sued Vungle, asking for his old job back or for compensation to cover his losses. As part of the sale of the company, that case has now been settled, according to a statement from Blackstone.“We look forward to contributing Blackstone’s resources to accelerate Vungle’s growth trajectory in the years ahead,” said Martin Brand, senior managing director at Blackstone, in the statement announcing the deal. Vungle chief executive officer Rick Tallman said the company would “aggressively expand” through organic growth and acquisitions. Jaffer said he now planned to spend some time with his family, and eventually start another company. “I’ve been itching to do that,” he said, adding that he was “thrilled” with the settlement and sale.Early employees at Vungle will also benefit significantly from the sale, thanks to an agreement that valued employees’ shares equally to those of large shareholders—unusual in a startup acquisition. In a 2017 vote after Jaffer’s arrest, big shareholders voted to convert their holdings to common shares. At the time, it had the effect of preventing Jaffer, then the majority shareholder, from reinstating himself as CEO. Now, it has the effect of putting all shares on equal footing in the sale. To contact the author of this story: Sarah McBride in San Francisco at smcbride24@bloomberg.netTo contact the editor responsible for this story: Anne VanderMey at avandermey@bloomberg.net, Mark MilianFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • The Funded: Private equity buyout of Vungle and other Bay Area VC news
    American City Business Journals2 days ago

    The Funded: Private equity buyout of Vungle and other Bay Area VC news

    A big funding, an IPO update and an acquisition top the Bay Area's venture news at the start of a new week. Here's more on that.

  • Blackstone Announces Agreement to Acquire Vungle, a Leading Mobile Performance Marketing Platform
    PR Newswire2 days ago

    Blackstone Announces Agreement to Acquire Vungle, a Leading Mobile Performance Marketing Platform

    NEW YORK, July 16, 2019 /PRNewswire/ -- Blackstone (BX) announced today that private equity funds managed by Blackstone ("Blackstone") have agreed to acquire Vungle, a leading performance marketing platform for in-app video advertisements on mobile devices. Vungle is trusted by publishers of more than 60,000 mobile apps worldwide, including top brands such as Rovio, Zynga, Pandora, Microsoft, and Scopely, among others. Vungle is headquartered in San Francisco with offices in London, Berlin, Beijing, Tokyo, Singapore and Seoul.

  • PR Newswire5 days ago

    Blackstone Mortgage Trust Announces Second Quarter 2019 Earnings Release and Conference Call

    NEW YORK, July 12, 2019 /PRNewswire/ -- Blackstone Mortgage Trust, Inc. (BXMT) today announced that it will publish its second quarter 2019 earnings presentation on its website at www.bxmt.com and file its Form 10-Q after market close on Tuesday, July 23, 2019. The company will also host a conference call to review results on Wednesday, July 24, 2019 at 10:00 a.m. ET. The conference call can be accessed by dialing +1 (888) 268-4178 (U.S. domestic) or +1 (617) 597-5494 (International) with the passcode 245-054-61# or by webcast at www.bxmt.com (listen only).

  • Blackstone, Kirkbi Weigh Sale of Space Station Insulator Maker Armacell
    Bloomberg5 days ago

    Blackstone, Kirkbi Weigh Sale of Space Station Insulator Maker Armacell

    (Bloomberg) -- Blackstone Group Inc. and Kirkbi AS are exploring a sale of Armacell International, the maker of specialized insulation products used by the International Space Station, according to people familiar with the matter.The investment firms have invited potential advisers to pitch for a mandate in the coming weeks, said the people, who asked not to be identified because discussions are private. The business could be valued at about 1.5 billion euros ($1.7 billion), two of the people said.Blackstone, the world’s biggest alternative asset manager, and Kirkbi, the investment company owned by the family behind the Lego toy brand, agreed to buy Armacell from Charterhouse Capital Partners in 2015. Since acquiring Armacell, the buyout firms have grown the business through at least half a dozen acquisitions, according to the website, with revenue climbing though profit margins have stagnated.Deliberations are at an early stage, and no final decisions have been made, the people said. Representatives for Blackstone and Kirkbi declined to comment.Armacell, founded in 1954, has made products used everywhere from the Empire State Building to the gigantic Gorgon natural gas project in western Australia. The Luxembourg-based company had 610 million euros of net sales in 2018 and adjusted earnings before interest, tax, depreciation and amortization of 106 million euros, according to its annual report.Blackstone and Kirkbi recently teamed up on a 4.8 billion-pound ($6 billion) bid for Merlin Entertainments Plc, which operates Legoland resorts, announced last month. The investment firms were among those that took Merlin public in a 2013 initial public offering.To contact the reporters on this story: Sarah Syed in London at ssyed35@bloomberg.net;Aaron Kirchfeld in London at akirchfeld@bloomberg.netTo contact the editors responsible for this story: Dinesh Nair at dnair5@bloomberg.net, Amy Thomson, Ben ScentFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Blackwells May Be the Antidote for Colony Capital’s Suffering
    CorpGov.com6 days ago

    Blackwells May Be the Antidote for Colony Capital’s Suffering

    Colony Capital Appears Undervalued with a Sum of the Parts Valuation Over $11 per Share  By John Jannarone Colony Capital (ticker: CLNY) is a maze of real-estate assets that many investors have elected to avoid. But with activist Blackwells Capital’s pressure on the company, there is a clear path to big rewards. With a […]

  • Blackstone Group (BX) Stock Sinks As Market Gains: What You Should Know
    Zacks7 days ago

    Blackstone Group (BX) Stock Sinks As Market Gains: What You Should Know

    Blackstone Group (BX) closed the most recent trading day at $46.38, moving -0.19% from the previous trading session.

  • Why Blackstone Group Gained 17.4% in June
    Motley Fool7 days ago

    Why Blackstone Group Gained 17.4% in June

    A change from an LP to a C-corp boosted the alternative asset giant to all-time highs.

  • Barrons.com8 days ago

    Carlyle Group May Be the Last Private-Equity Firm to Convert. That’s Good News for Its Stock.

    Private-equity firms have been switching their ownership structures to C-Corporation, and Carlyle Group may be the latest to make the jump. Carlyle stock rose on the news.

  • Carlyle Plans to Announce Conversion to C-Corp With Earnings
    Bloomberg8 days ago

    Carlyle Plans to Announce Conversion to C-Corp With Earnings

    (Bloomberg) -- Carlyle Group LP is planning to announce that the private equity firm will convert to a corporation when it reports second-quarter earnings, according to people with knowledge of the matter.The shares rose 4.1%, the biggest one-day jump since April.The Washington-based firm would be the last of the private-equity giants to switch from a partnership to a corporation, known as a C-corp -- a move designed to bring more investors into the stock. KKR & Co., Blackstone Group Inc., Apollo Global Management LLC and Ares Management Corp. all have seen their share prices jump since they made the change, which enables them to be included in indexes, mutual funds and exchange-traded funds.Carlyle, which hasn’t announced its earnings release date, has been exploring the move for several months. A representative for the firm declined to comment.“The pain of converting from a tax point-of-view is negligible and the benefits are substantial,” said Robert Willens, an independent tax consultant. “We’ve seen the stocks of these companies increase since their conversions, proving the theory that motivated them was a valid one.”Carlyle has mostly lagged behind its rivals since KKR announced in May 2018 that it would convert. Carlyle’s shares are up about 18% since then, less than KKR and Apollo. Blackstone has been the best performer, jumping about 50%.“The benefits we’ve seen from the conversions have not gone unnoticed,” Carlyle co-Chief Executive Officer Kewsong Lee said in a May conference call with investors. “There are many complex operational moving parts in connection with a conversion, and we intend to conclude our thinking with a decision in the not too distant future.”Private equity executives, who have a lot of their personal wealth in company stock, have long complained that their businesses are being undervalued by public investors. The catalyst for the switch was the new tax law in December 2017, which slashed the corporate rate to 21% from 35%.(Updates share gain in second paragraph.)\--With assistance from Melissa Karsh.To contact the reporter on this story: Heather Perlberg in Washington at hperlberg@bloomberg.netTo contact the editors responsible for this story: Alan Mirabella at amirabella@bloomberg.net, Vincent Bielski, Josh FriedmanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Blackstone and Pimco Tussle as Mortgage Lender Goes Bankrupt
    Bloomberg8 days ago

    Blackstone and Pimco Tussle as Mortgage Lender Goes Bankrupt

    (Bloomberg) -- Blackstone-backed mortgage lender Stearns Holdings LLC filed for bankruptcy as it seeks to clean up its debt-plagued balance sheet.The Chapter 11 filing in New York shows that Blackstone Group Inc., which acquired a majority stake in 2015, could wind up owning most of the rest of Stearns. It’s the 20th-largest U.S. home lender, with about 2,700 employees and 100 retail offices, according to court papers.Stearns blamed rising interest rates from late 2016 through 2018 for cutting into demand for residential mortgages, as well as a back-and-forth tussle with Pacific Investment Management Co. over potential solutions. The home lender said it will consider bids from other investors who might want to replace Blackstone. In the meantime, New York-based Blackstone will provide a $35 million bankruptcy loan to keep the company running, and also pledged to invest $60 million of new money, Stearns said in a statement.Stearns said it also lined up $1.5 billion of warehouse financing to keep its mortgage business operating. Warehouse loans provide cash to mortgage lenders so they can fund home purchases and refinancings and hold the mortgages until they’re sold off to investors.The company’s court filing listed $1.22 billion of assets and $1.16 billion of liabilities. It follows an attempt to negotiate an extension with existing noteholders ahead of a 2020 debt maturity.Pimco’s StakePimco owns about 67% of the company’s 2020 notes, Stephen Smith, chief financial officer of Stearns, said in a court declaration. As the maturity grew nearer and the company’s warehouse lenders expressed concerns about its liquidity, Stearns approached Pimco about a restructuring, Smith said.Stearns proposed a partial paydown of the debt, a maturity extension and relief from a requirement to use $42 million in proceeds from the sale of mortgage servicing rights to tender for the notes. Pimco rejected that offer and others, insisting it would consider a $50 million capital infusion into Stearns from Blackstone, or taking control of the business.Pimco would later refuse an offer to take ownership of Stearns, according to Smith, because its funds could not or would not take equity stakes in an enterprise. Instead, Pimco demanded to have its notes cashed out, or else it would insist on a liquidation.Warehouse Lenders“Needless to say, the liquidation alternative was completely and totally unacceptable to the debtors and Blackstone,” Smith wrote, citing the impact on 2,700 employees. The company offered to cash out Pimco’s notes at a discount, which the filing didn’t specify. Pimco rejected that idea and revived a demand that Blackstone make a significant equity infusion, he wrote. As the dispute dragged on, the company lost support from its warehouse lenders as they ramped up demands for collateral and covenants, the filing shows. One lender dropped out June 28 and another said it would stop new advances on July 15, spurring fears that other lenders would follow suit and shut the company down.Plans call for Stearns to solicit other bids that could replace Blackstone as the company’s owner. Offers have to be all cash, including from noteholders, and no one will be allowed to use their debt holdings as currency for a credit bid, the filing shows. Blackstone won’t get a breakup fee if a better bid emerges, and the plan doesn’t contemplate a court-supervised sale process. A Pimco representative declined to comment.Stearns’s debt was in place prior to Blackstone’s investment in 2015, when funds managed by the private equity giant acquired the majority stake. Stearns hired Skadden, Arps, Slate, Meagher & Flom LLP as its legal adviser, PJT Partners as its financial adviser and Alvarez & Marsal as its restructuring adviser.The case is Stearns Holdings, LLC, 19-12226, U.S. Bankruptcy Court, Southern District of New York (Manhattan)(Adds Pimco role, starting in the third paragraph.)\--With assistance from Jeremy Hill and Nicole Bullock.To contact the reporter on this story: Katherine Doherty in New York at kdoherty23@bloomberg.netTo contact the editors responsible for this story: Rick Green at rgreen18@bloomberg.net, Boris KorbyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • International Market Centers CEO: Atlanta is 'home of the gift industry' (Video)
    American City Business Journals9 days ago

    International Market Centers CEO: Atlanta is 'home of the gift industry' (Video)

    During the next three years, IMC will spend $280 million on its markets, which includes Atlanta's AmericasMart.

  • PR Newswire9 days ago

    GridLiance Expands Executive Team with Appointment of Richard Evans as Senior Vice President of Capital Execution

    DALLAS, July 8, 2019 /PRNewswire/ -- GridLiance, an independent electric transmission company, today announced the appointment of Richard Evans as senior vice president of capital execution, effective July 16, 2019. Evans will report directly to GridLiance President and CEO Calvin Crowder and serve as a member of the company's executive team. Evans will be responsible for all capital programs for the company as GridLiance expands its national footprint and invests in improving the reliability and resiliency of the grid.

  • Private Equity Titans Get Even Richer With Corporate Conversions
    Bloomberg12 days ago

    Private Equity Titans Get Even Richer With Corporate Conversions

    (Bloomberg) -- Shares of several U.S. private equity firms have jumped since they announced plans to convert themselves into corporations, making some of the world’s wealthiest people even richer.Steve Schwarzman’s net worth surged 20% to $16.2 billion since April, when Blackstone Group LP said it would abandon the partnership structure to attract a wider array of investors. Blackstone shares rose to a record of $47.48 Wednesday, two days after the conversion was finalized.The billionaire founders of KKR & Co., Apollo Global Management LLC and Ares Management Corp. have also seen their fortunes increase by several hundred million dollars following conversion announcements. Shares of all four firms have outperformed the S&P 500.The passage of the 2017 tax overhaul, which lowered the corporate tax rate to 21% from 35%, curtailed the tax advantages that come with publicly traded partnerships relative to corporations. This prompted several private equity firms to review their corporate structures.Switching to a corporation allows for shares to be included in stock-market indexes and eliminates the need for investors to file cumbersome K-1 tax forms. Many mutual funds and other institutional investors avoid publicly traded partnerships.Carlyle Group LP has yet to announce plans for a conversion. But co-Chief Executive Officer Kewsong Lee, when asked about the matter during a May 1 conference call, suggested that the firm is evaluating its options.“The benefits we’ve seen from the conversions have not gone unnoticed by us,” he said.To contact the reporters on this story: Anders Melin in New York at amelin3@bloomberg.net;Jasmine Teng in New York at jteng50@bloomberg.netTo contact the editors responsible for this story: Pierre Paulden at ppaulden@bloomberg.net, Peter EichenbaumFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Osram Accepts $3.8 Billion Offer From Bain and Carlyle
    Bloomberg12 days ago

    Osram Accepts $3.8 Billion Offer From Bain and Carlyle

    (Bloomberg) -- Osram Licht AG’s supervisory and managing boards accepted a 3.4 billion euro ($3.8 billion) takeover bid from Bain Capital and Carlyle Group LP, ending the German lighting company’s relatively brief and at times contentious period as a standalone company.Bain and Carlyle are offering 35 euros a share, 21% more than the stock’s close on Tuesday, amid reports about the latest offer. The price is still 15% lower than its peak this year in February. They’ve put a minimum acceptance level of 70% on the deal, excluding shares owned by Osram, and the acceptance period will run until early September. The stock rose 1.4% to 32.94 euros at the open of trading in Frankfurt.“Bain and Carlyle bring a lot of experience and have a deep knowledge of the industry,” Ingo Bank, Osram’s chief financial officer, said in a Bloomberg TV interview on Friday. “They will help us build the portfolio.”Bloomberg reported earlier Thursday that Osram’s supervisory board was poised to accept the offer.After Siemens AG spun off the light bulb-making division in 2013, Osram Chief Executive Officer Olaf Berlien began to refocus on higher technology, sparking a bitter and public dispute over strategy. Bain and Carlyle’s purchase of Osram would add to the $51.6 billion in private equity buyouts of European companies announced this year, according to data compiled by Bloomberg.Negotiations to buy Osram have moved slowly since they were first revealed in February. Funding has been a challenge as potential lenders raised concerns about future earnings forecasts for the company after Osram issued a string of profit warnings.Osram’s earnings deterioration during negotiations had a big impact on the deal, and the bidders also had concerns about the impact of the U.S.-China trade war on business. Bain and Carlyle were able to push down the offer price, but also struggled to raise a significant amount of debt, people familiar with the matter said. In the end about 70% of the acquisition cost -- an unusually high proportion -- comes from equity, or cash contributed by the buyers, while the remainder will be borrowed money, the people said.The offer is unlikely to include a so-called material adverse change clause, one of the people said, a provision that would allow the buyer to withdraw from the transaction if certain negative events like a fresh profit warning arise. The buyout firms declined to comment.Osram suffered from a downturn in the automotive industry, yet there remain growth opportunities in that sector, including with autonomous vehicles and continued digital lighting, Bank said in the interview. Bain and Carlyle will be focused on margin improvement as well as growing the business, he added.What Bloomberg Opinion Says“It would require real guts to turn down what Bain and Carlyle are dangling. Osram was already in a weak state when news about the potential bid first emerged in November.”--Bloomberg Opinion columnist Chris HughesThe German company has struggled since it was spun off from Siemens. Berlien shifted Osram’s focus to high-tech specialized lighting and LED chips, although he’s failed to get a handle on weakening market demand as European car sales drop. He has also tried to branch out into new areas to attract revenue such as through the purchase of horticultural lighting maker Fluence.Bain and Carlyle support the company’s strategy, and the bid is “attractive to employees as a lot of the labor provisions will stay intact so, yes, we support the offer,” Bank said.Osram now has the task of getting shareholders on board. Given the board’s acceptance of the offer came just last night, Bank said the company “doesn’t have much feedback” from shareholders yet, but expects the bid to receive “very good support” from investors.The company is hoping to avoid the fate of other take-privates in Germany such as online classifieds operator Scout24 AG, where Blackstone Group LP and Hellman & Friedman in May failed to convince sufficient shareholders to sell amid pressure from hedge funds to boost the offer price.AMS InterestDuring negotiations with Bain and Carlyle, Austrian sensor manufacturer AMS AG made an informal approach about a potential takeover of Osram, according to people familiar with the matter. While there was some strategic fit to a deal, Osram decided against pursuing talks because of concerns about the feasibility of AMS to fund the transaction due to its size and debt levels, said the people.A representative for AMS, which has a market value of $3.4 billion and counts Apple Inc. among its key clients, declined to comment.Credit Suisse Group AG, Goldman Sachs Group Inc., JPMorgan Chase & Co., Macquarie Group Ltd. as well as Nomura Holdings Inc. were financial advisers to Bain and Carlyle. Perella Weinberg Partners LP worked with Osram.(Adds info on offer, AMS interest and advisers from seventh paragraph.)\--With assistance from Andrew Noël.To contact the reporters on this story: Eyk Henning in Frankfurt at ehenning1@bloomberg.net;Aaron Kirchfeld in London at akirchfeld@bloomberg.net;Sarah Syed in London at ssyed35@bloomberg.netTo contact the editors responsible for this story: Matthew G. Miller at mmiller144@bloomberg.net, Amy Thomson, Ben ScentFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Financial Times12 days ago

    Why parts of Wall Street are fretting over ‘toxic’ loans

    Steve Ketchum is not happy. The hedge fund manager is a big investor in so-called leveraged loans , a corner of the debt market that involves lending to riskier, lower-rated companies. Mr Ketchum believes ...

  • India Lender Seeks $217 Million in Fresh Loans a Month
    Bloomberg13 days ago

    India Lender Seeks $217 Million in Fresh Loans a Month

    (Bloomberg) -- Dewan Housing Finance Corp., an Indian mortgage lender that has delayed payment on some of its obligations, plans to ask banks to lend 15 billion rupees ($217 million) every month to help revive the company, a person with knowledge of the proposal said.The financier, which has about 800 billion rupees of obligations, will submit the resolution plan on July 10 to a consortium of seven lenders led by state-run Union Bank of India, the person said, asking not to be identified as the discussions are private. The other proposals include increasing the tenor of some loans and converting part of its debt into equity, according to the person.Investor confidence was shaken after financier Infrastructure Leasing & Financial Services Ltd. defaulted for the first time in June 2018, shutting the door for bank loans for many shadow lenders. Dewan Housing was among the worst hit in the wake of the IL&FS shock, which also pushed up financing costs and made it harder for non-bank financing companies to access the bond market. Dewan Housing’s credit rating was slashed to D from AAA this year as it delayed repayments.Under the proposal, Dewan Housing will offer banks new loan pools as security for the funds, the person said. That in turn will help lenders meet their mandatory targets to lend to farmers and small businesses. Dewan Housing is proposing banks fund the company for the next six months, the person said.Dewan Housing has so far securitized about 250 billion rupees from its 1.2 trillion rupees of loan book, the person said. The details of the proposal are subject to change and it’s unclear if the lenders will approve the plan, the person said. A spokeswoman for Dewan Housing declined to comment.While lenders mull the resolution plan, Dewan Housing will continue looking for an investor for a stake in the company. Founders hold about 39.6% in the company, and plan to sell half of their shares, the person said. The company has been selling assets including a mutual fund, low-cost housing-finance unit, and an education-loan company. Dewan Housing shares have lost about 87% of their value over the past year. They were little changed at 83.2 rupees at the 3:30 p.m. close in Mumbai on Thursday. The financier’s liquidity profile has been under stress due to delay in “identification and induction of strategic investor” and limited progress selling its real estate loan book, Care Ratings said in a release last month.If the resolution plan is accepted by the lenders, Dewan Housing will seek approval from institutional investors to either extend the maturity of its bonds or change the coupon rate, the person said. The company expects to repay individual investors without changing bond terms.The financier expects to earn enough interest on its assets to meet debt repayments due this quarter, which total about 70 billion rupees, the person said. It was behind schedule in servicing its financial obligation last month. It delayed payments on debt of 11.85 billion rupees.(Adds share performance in seventh paragraph.)\--With assistance from Suvashree Ghosh.To contact the reporters on this story: Baiju Kalesh in Mumbai at bkalesh@bloomberg.net;Divya Patil in Mumbai at dpatil7@bloomberg.netTo contact the editors responsible for this story: Andrew Monahan at amonahan@bloomberg.net, Arijit Ghosh, Jeanette RodriguesFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.