|Bid||4.4400 x 3100|
|Ask||0.0000 x 1800|
|Day's Range||4.4300 - 4.5700|
|52 Week Range||4.3850 - 6.2800|
|Beta (3Y Monthly)||1.22|
|PE Ratio (TTM)||N/A|
|Earnings Date||Aug 8, 2019 - Aug 12, 2019|
|Forward Dividend & Yield||0.44 (9.84%)|
|1y Target Est||7.08|
Colony Capital (CLNY) delivered FFO and revenue surprises of -31.25% and -13.66%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?
Colony Capital, Inc. and subsidiaries today announced its financial results for the second quarter ended June 30, 2019 and the Company’s Board of Directors declared a third quarter 2019 cash dividend of $0.11 per share to holders of Class A and Class B common stock.
Colony Capital, Inc. (NYSE:CLNY), which is in the reits business, and is based in United States, saw a decent share...
By John Jannarone Colony Capital Founder & CEO Thomas Barrack to Step Aside Following Activist Blackwells Capital's Influence Strategy Shift from Digital Bridge Acquisition Indicates Colony is Worth at Least $12.74 per Share in Sum of the Parts Analysis Blackwells Capital Likely to Nominate an Additional Four Directors to Board Colony Capital Inc. has taken […]
(Bloomberg) -- Tom Barrack, the investor and longtime friend of President Donald Trump, was an early advocate of strengthening ties between the White House and Saudi Arabia.Now his firm, Colony Capital Inc., is doing business with the kingdom’s sovereign wealth fund.When Colony decided to invest in digital infrastructure such as cellphone towers and data centers after Trump’s election, it brought in the kingdom’s Public Investment Fund, according to people familiar with the matter. Colony worked with another firm, Digital Bridge, to form a $4 billion investment vehicle that closed in June. Since then, Colony has decided to acquire Digital Bridge of Boca Raton, Florida.The size of the Saudi investment, not reported previously, hasn’t been disclosed.Los Angeles-based Colony and PIF are discussing another tie-up. If it happens, the Saudis would become co-investors in a Hollywood studio, Bloomberg News reported this week. The discussions for a stake in Legendary Entertainment would fulfill a longtime goal of the Saudis for a foothold in the entertainment business.Barrack had pursued business across the Middle East for decades, but he hadn’t done a deal with the massive Saudi fund. That changed after Trump’s 2016 presidential run, a time when Barrack straddled multiple roles -- a leader of Colony, a campaign adviser and a key member of the presidential transition team.During that time, he also laid groundwork with the Saudis. Those interactions were more extensive than has been previously reported. Barrack jetted to a feast with a prince and also was invited to meet with key diplomats at Treasury, according to people familiar with the matter, whose accounts were supported by flight records and official calendars.Those people added new details about how the relationship developed with the Saudis as well as their allies in the United Arab Emirates. In one example, Barrack flew overseas in December 2016 to feast with the head of the Saudi wealth fund and Mohammed bin Salman, who is known as MBS and was then the deputy crown prince. At the time, Barrack was overseeing Trump’s inaugural planning and weighing in on cabinet appointments.Barrack’s Middle East forays are being scrutinized by Democratic lawmakers, who say he and other Trump aides “obliterated the lines” that normally separate policy-making from corporate interests. A new congressional report shows that Barrack attempted to include language in a Trump campaign speech on energy policy that the lawmakers concluded had been vetted by a friend from the U.A.E.After Trump won, Barrack began working to sell U.S. nuclear technology to the Saudis without restrictions on weapons development -- wielding “outsized influence,” according to the Democratic-led report.A spokesman for Barrack said it’s well known that he has engaged in “investment and business development throughout the Middle East for the purpose of better aligned Middle East and U.S. objectives.” The spokesman added: “Mr. Barrack’s consistent attempts to bridge the divide of tolerance and understanding between these two great cultures is etched in the annals of time. This is not political, it is essential.”A representative of the Saudi sovereign wealth fund declined to comment.Sagging BusinessThe latest proposed tie-up comes at a fraught time for both Barrack and PIF. Hollywood cooled on the sovereign wealth fund after the Central Intelligence Agency determined that MBS, who’s now the crown prince, ordered the killing of a U.S. resident journalist, Jamal Khashoggi, an allegation the kingdom denies.Meanwhile, Barrack’s business has been sagging, and investigators have been looking into Trump’s inaugural committee, which raised $107 million under Barrack’s leadership. Federal prosecutors in Brooklyn are probing his relationships in the Middle East, the New York Times reported on Sunday.Barrack had built his career catering to his powerful clients, helping Middle East royals find a home in the U.S. or good halal food near an investment site. As Trump’s star rose, he presented himself as a connector between Saudi and Emirati leaders and decision-makers in Trump’s orbit.His efforts didn’t come to much, at least initially. The Mideast nuclear plan he pushed hasn’t come to fruition. Barrack angled for a role as a special envoy to the Middle East, without success. He appeared to lose influence as Jared Kushner, Trump’s son-in-law and senior adviser, developed a close relationship with MBS. Deepening the sting, Barrack’s relationship with Qatar, historically one of his most lucrative in the region, took a hit when the Saudis and Emiratis blockaded the tiny kingdom with Trump’s blessing.Read More: Tom Barrack Got Trump Right, Then Things Went WrongBut now Colony is beginning to see some upside. In 2017, as Colony began working with Digital Bridge to raise the infrastructure fund, the Saudis indicated interest -- not just in investing in the Digital Colony vehicle but taking an ownership stake, according to a person familiar with the matter.Although selling a stake to the Saudis would have given Colony a quick profit, it would have crimped its ability to collect management and performance fees over the longer run, and also risked deterring other investors, including several pension funds that separately committed to Digital Colony. The Saudi investment is in the nine figures, according to one person familiar with the matter.“We never comment on deals,” Tommy Davis, an adviser to Barrack, wrote in an email, saying that Colony had more than 500 limited partners globally. “Nor do we talk about potential LPs or any discussions we have with them.”With the combination of Colony and Digital Bridge, Barrack will step down as Colony CEO in 2021. The head of Digital Bridge, a deal-maker named Marc Ganzi, will be the combined company’s new chief executive officer, Colony said last week. Barrack will remain executive chairman. Colony shares, which have collapsed since a disastrous January 2017 merger, popped on the news.Colony’s latest deal with PIF would be a strategic reversal. The firm, best known for its real estate bets, exited the entertainment business with its 2016 sale of Miramax to a Qatari company. Now it’s dipping back in, seeking a minority stake in Legendary Entertainment, the studio responsible for the “Godzilla” franchise.Colony’s change of heart came after PIF showed interest in Legendary last year. Legendary management told the Saudis that it had “no interest in conducting a transaction” with the wealth fund, according to the Hollywood Reporter. Barrack’s deep ties in Hollywood could help smooth sensitivity there around the Khashoggi murder. PIF is discussing investing in Legendary through a new vehicle called Colony Media Partners.Representatives of Legendary, owned by Beijing-based Dalian Wanda Group, declined to comment.Multiple HatsBarrack’s relationship with the Saudis blossomed as he worked with key members of the Trump transition. On a morning in early December 2016, he met with Kushner in Colony’s New York offices, according to people familiar with the situation. At the time, Barrack was the chairman of Trump’s inaugural committee, and was in the midst of shaping the incoming cabinet.Hours after meeting Kushner, Barrack flew to the gulf region, returning through London. In an intimate banquet with platters of Middle Eastern food, he and MBS were joined by Yasir Al-Rumayyan, an ally of the prince and a managing director of the Saudi sovereign wealth fund, according to people familiar with the gathering.Barrack was accompanied by Sylvio Sharif Tabet, a former Hollywood producer who, like his boss, is of Lebanese descent. Tabet helps manage Barrack’s business affairs in the Middle East as Colony’s global head of investor relations.The next month, several figures from the region were on Barrack’s personal guest list for his chairman’s dinner, one of the inaugural week’s most lavish events. Among them was Rashid al-Malik, an ally of Crown Prince Mohammed bin Zayed of the United Arab Emirates, an advocate of MBS’s ascent in Saudi Arabia. Barrack’s relationship with Malik is of interest to prosecutors, according to the Times.Later, as Barrack pushed the Saudi nuclear deal, his path crossed often with others in the Trump administration, including Treasury Secretary Steven Mnuchin.In April 2017, at the Fiola Mare restaurant in Washington, Barrack and Mnuchin met with seven Gulf ambassadors, according to Treasury calendars obtained by American Oversight, a nonprofit organization. At the time, Barrack was proposing that PIF, the Saudi sovereign fund, play a role in the acquisition of Westinghouse, a bankrupt U.S. nuclear company.Earlier that day, Barrack received an email from a partner in the Saudi nuclear effort stating that Gary Cohn, then Trump’s chief economic adviser, had “agreed to signal support to the PIF” on the Westinghouse venture.Though Barrack had no formal role in the administration, he remained in demand. That June, he was invited along with representatives from Middle Eastern countries to the U.S. Treasury for dinner, according to calendar entries obtained by American Oversight and not previously reported.The guest list included 24 dignitaries and finance officials. Yousef Al Otaiba, the United Arab Emirates ambassador to Washington and an old friend of Barrack’s, was invited. So was an executive of Thrive Capital, the venture firm managed by Josh Kushner, Jared’s brother. It’s not clear what was discussed.Everyone was identified on the calendar by name and title, except for Mnuchin’s wife and the man whose multiple roles may have made it hard to pick just one -- Tom Barrack.\--With assistance from Matthew Martin.To contact the reporters on this story: Caleb Melby in New York at email@example.com;Gillian Tan in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Jeffrey D Grocott at email@example.com, David S. JoachimFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Colony Capital Inc. is worth more than $11 a share on a sum-of-the-parts basis, according to an analysis by CorpGov Editor-in-Chief John Jannarone. In an interview with Jake Merl on Real Vision, Jannarone explains that Colony is a misunderstood collection of diverse assets that would be far more valuable broken into pieces or sold outright. He also […]
(Bloomberg) -- Colony Capital Inc., the investment company led by Tom Barrack, is weighing the purchase of a minority stake in Legendary Entertainment, the film and TV company behind the “Godzilla” franchise.Colony has held talks about buying the stake in the media company from Chinese billionaire Wang Jianlin’s Dalian Wanda Group, according to people familiar with the matter. The investment could value the backer of “Jurassic World: Fallen Kingdom” significantly lower than the $3.5 billion Wanda acquired it for in 2016, some of the people said, asking not to be identified as the talks are private.The investment would be made via a new fund called Colony Media Partners and mark a return to the media industry for Colony, which sold production company Miramax to Qatar-based BeIN Media Group in 2016, some of the people said. Saudi Arabia’s Public Investment Fund has also shown interest in investing in Legendary via the fund, the people said. No deal has been finalized and could still fall through.Representatives for Colony, Legendary and PIF declined to comment. Wanda couldn’t be reached outside of business hours in China.Saudi Arabia’s sovereign wealth fund may be revisiting its interest in Legendary. PIF explored a potential $700 million stake in Legendary last year, Reuters reported. A deal backed by the fund could test Hollywood’s appetite for Saudi-backed investments.Endeavor Group Holdings Inc., led by talent agent turned media mogul Ari Emanuel, returned $400 million from Saudi Arabia’s investment fund following reports that the government was linked to the killing of journalist Jamal Khashoggi.Barrack, who was chairman of President Trump’s inaugural committee, announced plans earlier this month to step down from his role as chief executive officer of Los Angeles-based Colony in 2021.Joshua Grode, Legendary’s CEO, knows Colony well. Before joining Legendary, he advised the firm on its 2010 purchase of Miramax from Walt Disney. And Colony looks favorably on opportunities to invest with Grode, one of the people said.The rise of streaming and the domination of Walt Disney Co.’s major film franchises has put pressure on box office revenues for smaller film producers like Miramax and Lions Gate Entertainment, which have been seeking new investors. Since its 2016 takeover by Wanda, Legendary has had some box office disappointments like most recently “Godzilla: King of the Monsters,” which missed industry projections. However it has had other successes such as “Pokemon Detective Pikachu,” one of its first movies via Warner Bros. after its co-financing agreement with Universal Pictures came to an end in December.\--With assistance from Matthew Martin, Crystal Tse and Jinshan Hong.To contact the reporters on this story: Liana Baker in New York at firstname.lastname@example.org;Gillian Tan in New York at email@example.com;Anousha Sakoui in los angeles at firstname.lastname@example.orgTo contact the editors responsible for this story: Michael Hytha at email@example.com, ;Liana Baker at firstname.lastname@example.org, Linus Chua, James LuddenFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Colony Capital Inc. agreed to acquire Digital Bridge Holdings LLC, an investor in mobile and internet connectivity companies, for $325 million, paving the way for Chief Executive Officer Tom Barrack to be succeeded by Digital Bridge co-founder Marc Ganzi.The purchase comes as Los Angeles-based Colony Capital seeks to become a key investment manager in the area of technology-linked real estate. Ganzi, who founded Digital Bridge with Ben Jenkins in 2013, will become CEO of Colony Capital in about 18 to 24 months, and Barrack will return to the role of executive chairman, the companies said Thursday in a statement, which followed an earlier report by Bloomberg.Ganzi “is an exceptional choice” to lead the company “as we accelerate, streamline and cull other Colony business lines through sale or joint ventures and continue to reduce corporate costs,” Barrack said in the statement.Colony will expand its digital, credit and investment management platforms while realigning and redirecting its hospitality and health-care businesses, Barrack said. The company is exploring the sale of Colony Industrial, its unit that owns warehouses, with a deal potentially fetching more than $5 billion, people with knowledge of the matter said last week.The company’s shares rose 3.8%, their biggest gain in almost six months, on Thursday.Colony Capital and Digital Bridge were already partners in Digital Colony Management LLC, a communications infrastructure-focused firm that last month announced the closing of an inaugural investment fund that has $4.05 billion in commitments.Digital Colony has been active in the mergers-and-acquisitions space, partnering with EQT Partners to buy fiber-network owner Zayo Group Holdings Inc. for more than $8 billion. Earlier this year, Digital Colony agreed to acquire Cogeco Peer 1 Inc., a business information and communications technology services business, from Cogeco Communications Inc. in a deal valued at C$720 million ($549 million).Ganzi, a longtime digital-infrastructure executive, founded Global Tower Partners in 2003, and the company was acquired by American Tower Corp. a decade later for about $4.8 billion.Colony Capital, which manages $43 billion with a focus on real estate, has been struggling to bounce back from a calamitous January 2017 merger with two NorthStar companies. Since the deal’s completion, its stock had fallen about 67% through Wednesday. Barrack, who was chairman of Trump’s inauguration committee, returned to the CEO role at Colony Capital last November.Assets under management at Colony Capital will rise to about $60 billion with the Digital Bridge acquisition.(Updates with closing share price in fifth paragraph.)To contact the reporter on this story: Gillian Tan in New York at email@example.comTo contact the editors responsible for this story: Alan Goldstein at firstname.lastname@example.org, Daniel Taub, Steve DicksonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Colony Capital, Inc. (CLNY) (“Colony” or the “Company”), a leading global investment management firm, announced today that it has acquired Digital Bridge Holdings LLC (“Digital Bridge”) for $325 million as part of Colony’s strategic evolution into the leading owner and investment manager of assets, businesses, and investment management products in which the digital and real estate frontiers intersect. The Digital Bridge acquisition follows the May 2019 final closing of Digital Colony Partners, a $4.05 billion fund sponsored by Colony and Digital Bridge.
California Resources Corporation (CRC) and Colony Capital, Inc. (CLNY) through its energy investment management arm, Colony HB2 Energy (collectively, “Colony”), announced today that they have formed a strategic joint venture in which Colony has committed to fund $320 million for the development of CRC’s flagship Elk Hills field, located in the San Joaquin Basin. Subject to the mutual agreement of the parties, the total investment may be increased to $500 million. The initial investment commitment will cover multiple development opportunities throughout the Elk Hills field and is intended to be invested over approximately three years in accordance with a pre-approved development plan consisting of approximately 275 wells.
(Bloomberg Opinion) -- To get Brooke Sutherland’s newsletter delivered directly to your inbox, sign up here.It’s going to be unbearably hot across much of the U.S. this weekend, but the early returns on industrial earnings have been decidedly cool. A nearly 30% run in CSX Corp. shares heading into its second-quarter earnings report suggested this was a company where investors thought they could find shelter amid a growing body of worrisome manufacturing data. They were wrong. The shares slumped more than 10% the day after CSX reversed a forecast for low single-digit growth in revenue this year and predicted instead that revenue would dip as much as 2%. The East Coast railroad says it’s being cautious, but the time for conservatism is when you start the guidance-giving process, so that strikes me as an inadequate explanation for such a deep cut. CEO James Foote said the macroeconomic backdrop was one of the most “puzzling” he’s ever experienced and that there are no concrete signs of improvement in weak coal, intermodal and industrial volumes.Elsewhere in transportation, J.B. Hunt Transport Services Inc. and West Coast railroad Union Pacific Corp. actually saw their shares pop on earnings, but that seems to be a case of more realistic expectations than a drastically more positive view of the macroeconomic environment. J.B. Hunt was essentially flat going into earnings, for example, and Union Pacific had sold off in sympathy with CSX before it reported. Union Pacific said it expects second-half volume to be down about 2%, which implies a decline for the full year compared with an earlier call for a low-single digit gain – basically mimicking CSX’s move. The other challenge with CSX is that it appears to be far enough along in its conversion to precision-scheduled railroading that there isn’t as much fat left to cut as there is at Union Pacific. But it’s track record of improved performance is still relatively short, capping its ability to make market share gains amid a surplus of capacity and lower spot rates in the trucking market. Bloomberg News’s Cameron Crise points out the sharp divergence in the performance of S&P 500 railroads and FedEx Corp. over the past, calling it a proxy of sorts for the trade war-inspired slowdown that’s hit companies with international exposure like FedEx harder than those focused on the domestic market. If U.S. railroad stocks fail to recover from the CSX-inspired selloff and the gap to FedEx narrows, that could be a sign that the domestic economy and the bull market are running out of steam, he writes. FedEx, of course, has plenty of idiosyncratic issues holding back its stock. The company’s annual report filed this week included interesting disclosures abut the risk of an activist shareholder getting involved and some additional detail on the logistics investments that could render Amazon.com Inc. a competitor. Things were a bit better at the multi-industrial companies, but there was still cause for concern. Textron Inc. said its aviation backlog slipped by $100 million in the second quarter as macroeconomic concerns and President Donald Trump’s threat to impose wide-ranging tariffs on Mexico spooked business-jet customers. That’s counteracted by Honeywell International Inc.’s report of double-digit sales growth for new business jet equipment, but still a troubling sign of just how nervous people are about making big investments. You can usually count on Honeywell to churn out an earnings beat, and the company didn’t disappoint, raising its profit guidance for the full year. But the outlook wasn’t as robust as some analysts were expecting. Organic sales growth of 5% could end up being the pace to beat this quarter, but that was weaker than anticipated and a forecast for 2% to 4% growth in the third quarter would suggest an accelerating slowdown. The dynamic of somewhat disappointing sales numbers but steady earnings growth in some ways reinforces Honeywell’s argument that last year’s breakups and a pristine balance sheet will make it more resilient in a downturn, but I remain unconvinced that margins for anything except funeral homes are recession-proof. It helped Honeywell that the sales weakness was mostly confined to its safety and productivity solutions unit, the smallest of its four main businesses, and aerospace remained impressively robust with 11% organic sales growth. The industrial companies on tap to report earnings next week may not be so lucky, particularly 3M Co., which seems destined for yet another guidance cut to reflect the deepening slowdown.ALL BOEING WANTS FOR CHRISTMAS IS A FLYABLE MAXBoeing Co. this week pre-announced a $4.9 billion after-tax second-quarter charge to reflect its estimate of compensation owed to airlines grappling with a grounding of the beleaguered 737 Max that’s now entering its fifth month. American Airlines Group Inc., Southwest Airlines Co. and United Airlines Holdings Inc. this week pulled the Max from their schedules through the beginning of November – a timeline that jibes with Boeing’s call for the plane to return to service during the fourth quarter. But the risk remains that the grounding stretches into 2020. The Federal Aviation Administration, mindful of restoring its reputation as the global standard-bearer of safety protocol, is keen to coordinate a return to service with European and Asian regulators. And while a fix for the flight-software system linked to the Max’s two fatal crashes has essentially been completed, there remain hurdles to remedying a separate issue with a microprocessor that was identified in June, including convincing the FAA that a software update is sufficient, according to the Wall Street Journal. Even if Boeing can get the plane recertified and flying again by the fourth quarter, it matters a great deal which particular month that happens. Airlines estimate it will take a month to 45 days to complete the maintenance necessary to bring the Max jets they already operate out of storage, which is to say nothing of the additional planes they had been expecting to support busy schedules. I would imagine airlines’ demands for compensation would rise materially if they are forced to scramble and reassess capacity for holiday flights. Ryanair Holdings Plc said this week it’s prudently planning for a December return of the Max, but pared its growth plans for the 2020 summer travel season. It can only accept six to eight new Max planes per month, which will leave the budget airline with about half of the fleet it had been planning on for that peak season. Data points like that make me highly skeptical of Boeing’s aspirations to ramp up to a 57-per-month production pace for the 737 program in 2020.A WORD ON WAREHOUSESThere has been a surge of spending over the past few years on industrial warehouse assets. The latest deal came this week , when Prologis Inc. agreed to buy Industrial Property Trust and its 236 properties in areas such as the San Francisco Bay Area, Chicago and New Jersey for about $4 billion. This follows Prologis’s acquisition of DCT Industrial Trust Inc. last year for more than $8 billion and its pursuit earlier this year of GLP Pte’s U.S. warehouse assets, which ultimately went to Blackstone Group LP instead for $18.7 billion. Meanwhile, Tom Barrack’s Colony Capital Inc. is exploring a sale of its unit that owns warehouses as part of a strategic review meant to resuscitate its plunging market value, according to Bloomberg News. I understand the logic of these deals: Retailers are under immense pressure to build out their e-commerce capabilities and shorten their delivery times and on the face of it, that trend looks less vulnerable to the trade war and macroeconomic uncertainties than many others. Even so, it gives me pause to hear Honeywell say customers for its Intelligrated warehouse-automation business are pushing major system rollouts into the second half of the year. Intelligrated is still growing rapidly, with organic sales growth of more than 20% for the first half of 2019, and Honeywell CEO Darius Adamczyk said he knew for a fact that the delayed orders hadn’t gone away. But going back to my earlier comment about funeral homes, I’m getting less confident that even this trend can withstand the test of a true downturn. I asked Bloomberg Opinion's retail expert Sarah Halzack what she thought. She pointed out that companies like Walmart Inc. and Williams-Sonoma Inc. are too far along in converting their businesses to e-commerce to back out, whereas those who are already struggling such as J.C. Penney Co. will find it harder to justify making those kinds of investments.DEALS, ACTIVISTS AND CORPORATE GOVERNANCEJohn Flannery has resurfaced. The former CEO of General Electric Co. will now be an advisory director to Charlesbank Capital Partners, a middle-market private equity firm managing more than $5 billion of capital. I’ve always felt a bit bad for Flannery, who spent 30 years working his way up the ladder at GE and finally ascended to the CEO post, only to find out that his actual job was going to be more akin to a garbage man. Sure, he made his share of mistakes as CEO. But the reality is he was probably never going to last in that job no matter what he did. GE needed one CEO to publicize and unearth the skeletons in its closet ($22 billion goodwill writedown on the disastrous Alstom SA deal, $15 billion reserve shortfall in the long-term care insurance business) and another CEO to try to fix the mess. That’s now Larry Culp. Still, it has to sting a bit that Steve Bolze, Flannery’s competitor in the race to succeed Jeff Immelt, is a senior managing director at Blackstone, a slightly more prominent firm than Charlesbank. Bolze is blamed by many investors for mismanaging GE’s power unit and exacerbating the financial pain from a slump in gas turbine demand.Crane Co.’s bid for Circor International Inc. got a last minute surge of support. Mario Gabelli’s Gamco Investors Inc. agreed to tender shares to Crane after the buyer raised its price to $48 a share earlier this month. Roughly 45% of outstanding Circor shares have been elected to be tendered, people familiar with the matter told Bloomberg News. That’s not enough to force a merger (although there are still a few more hours before the tender offer expires at midnight), but it should be enough to get the attention of Circor’s board’s. In the wake of the Crane offer, Circor laid out a bold (and by nature, rather fluffy) plan to boost margins and lower debt. Shareholders are now signaling quite loudly that they don’t have much faith in the company’s ability to follow through. It’s pretty remarkable to see this level of pushback outside of an annual meeting, though. I had worried Crane’s bid might have been the victim of bad timing, with its offer becoming public a few weeks after Circor’s 2019 meeting. The fact that Circor’s board had privately received the Crane offer prior to the meeting and didn’t feel a need to tell investors about it has been one of Gabelli’s chief criticisms. This level of support from Circor shareholders may save Crane from having to wait a year to relaunch its bid with a proxy fight.Osram Licht AG, the lighting maker that’s agreed to sell itself to Bain Capital and Carlyle Group LP, disclosed this week that Austrian industrial manufacturer AMS AG had made a fresh offer for the company at a higher price. Bain and Carlyle are offering 35 euros per share, or 3.4 billion euros ($3.8 billion), while AMS had proposed to pay 38.50 euros per share, or about 3.7 billion euros. The problem is, AMS itself is valued at less than what it offered for Osram; it’s had negative free cash flow for at least the past two years; and it’s already carrying about 1.2 billion euros of net debt. Osram agreed to let AMS perform due diligence, but said the probability of a deal materializing was “rather low.” Literally the same day that its latest offer was disclosed, AMS said it was walking away. In some ways that’s actually kind of surprising – why wouldn’t you take the opportunity to do due diligence? But anyway, this amusing M&A adventure has now come to an end.Callon Petroleum Co. agreed to buy Carrizo Oil & Gas Inc. in an all-stock transaction valued at $3.2 billion including debt. Bernstein analyst Bob Brackett called it a “pretty lame deal all-in-all”, while my Bloomberg Opinion colleague Liam Denning said the merger sounds a “distinct sad-trombone note.” Carrizo helps Callon double down on the Delaware Basin with contiguous acreage and lets it add free cash flow on the cheap, but it also dilutes its status as a pure-play operator by adding acreage the Eagle Ford region, where it may be harder to find cost savings. Some investors may have viewed Callon as a target and are disappointed to see it on the other end of a deal. The consolidation of shale players is healthy and necessary, Liam writes. But the fact that Carrizo has chosen to sell at a modest premium when its stock was trading at the lowest levels in a decade is pretty telling, too.CRH Plc agreed to sell its European plumbing and heating-distribution business to Blackstone for 1.64 billion euros ($1.9 billion). CEO Albert Manifold has been trying to steer the company toward higher growth markets including cement and raise money for acquisitions. This deal helps it do both. Davy analyst Robert Gardiner says the purchase price is attractive at about 16 times earnings before interest and taxes.BONUS READING Saturday Will Be Hot. Oil and Gas Will Be Not: Liam Denning Axalta Is Said to Draw Interest From Kansai Paint and PPG Ex-Cons Find Second Chances Easier to Get in Tight Labor MarketThe Moon Is the Next Frontier in Rivalry Between China and U.S. Porch Pirates Spot Criminal Opening in Amazon Prime Day BonanzaTo contact the author of this story: Brooke Sutherland at email@example.comTo contact the editor responsible for this story: Beth Williams at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
By John Jannarone Colony Capital (ticker: CLNY) is exploring a sale of its industrial real-estate unit, according to a Bloomberg report Wednesday, news that comes less than a week after CorpGov published an an analysis showing the company could be more valuable if it were broken up or sold outright. The asset, which is structured […]
Colony Capital, Inc. (“Colony Capital” or the “Company”) (CLNY) today announced it will release second quarter 2019 financial results before the market opens on Friday, August 9, 2019. The Company will conduct a conference call to discuss the results the same day at 7:00 a.m. PT / 10:00 a.m. ET. International callers should dial (201) 689-8471.
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 […]
If you want to know who really controls Colony Capital, Inc. (NYSE:CLNY), then you'll have to look at the makeup of...
Colony Capital, Inc. (CLNY) (“Colony Capital,” or the “Company”), a leading global investment management firm with assets under management of $43 billion, today announced that its Board of Directors appointed Ms. Dale Anne Reiss as a new independent director, effective immediately. Thomas J. Barrack, Jr., Executive Chairman and Chief Executive Officer of Colony Capital, said, “We are extremely pleased to have Dale Reiss join our Board.
Colony Capital, Inc. (CLNY) and subsidiaries (collectively, “Colony Capital,” or the “Company”) has successfully completed the refinancing of its prior $1.725 billion consolidated healthcare loan maturing in December 2019. Ventas, Inc. (VTR), a leading healthcare real estate investment trust, is continuing its strong relationship with the Company through an investment in the entire junior tranche of $490 million. The Company’s ownership position in these properties is 70%.
Two hotels in Chandler under the Hilton Hotels Corp. (NYSE: HLT) flag recently underwent full-scale, property-wide renovations that include modernization of all guest rooms, suites, meeting spaces and common areas. The two properties, Homewood Suites by Hilton Phoenix-Chandler and the Hampton Inn & Suites Phoenix-Chandler, are next to each other just off Interstate 10 and north of Chandler Boulevard. The renovations at both hotels were similar with new high-quality public spaces with upgraded decor.