The Daily Deal articles from August 2003

The Daily Deal archives from August 2003

UPC clears last reorg hurdle.
August 27, 2003... Byline: Renee Cordes United Pan-Europe Communications NV, Europe's largest cable operator by subscribers, can finally reinvent itself after the Dutch Supreme Court on Tuesday dismissed a small creditor's legal challenge to its...

TransForce wins Canadian Freightways auction.
August 27, 2003... Byline: Laura King in Toronto Transport and logistics giant TransForce Income Fund said Tuesday it is buying the Canadian subsidiary of bankrupt Consolidated Freightways Corp. in a deal valued at C$85 million ($61 million). ...

Judge clears path for Acterna exit.
August 27, 2003... Byline: Terry Brennan A New York judge approved a disclosure statement for bankrupt Acterna Corp. Tuesday, Aug. 26, that would pay telecom supplier's bank group 41 cents on the dollar. Judge Burton Lifland in U.S. Bankruptcy Court...

Mopmaker O-Cedar files for bankruptcy.
August 27, 2003... Byline: Greg Johnson Kitchen mop maker O-Cedar Holdings Inc. finally met a mess it couldn't clean up. Blaming sluggish sales, reluctant banks and slow-paying major customers, the ailing Springfield, Ohio, consumer products maker...

MCI monitor pushes 'chewable' pills.
August 27, 2003... Byline: Chris Nolter A long-awaited report by WorldCom Inc.'s corporate monitor states that the reorganized company can adopt mechanisms to thwart takeover attempts, but that the decision about which sharks to repel should be left to the...

DVI files for Ch. 11.
August 27, 2003... Byline: Soma Biswas DVI Inc. has filed for Chapter 11 after admitting to accounting irregularities and defaulting on loans from a bank group led by Fleet Capital. The medical equipment financing company blamed its filing on...

AmPad emerges as Crescent unit.
August 27, 2003... Byline: Greg Johnson American Pad & Paper LLC, the inventor of the legal pad, no longer needs legal help for its bankruptcy woes. The Plano, Texas-based supplier of notepads and other office supplies said Tuesday, Aug. 26, that it...

Ashford IPO fails to excite investors.
August 27, 2003... Byline: Jonathan Berke Ashford Hospitality Trust Inc. finally went public Tuesday, Aug. 26, with a $202.5 million initial public offering, but it had lots of trouble selling its story to investors. First, the Dallas-based hotel REIT...

Streamline effect.
August 27, 2003... Byline: Thomas Parker, Amy S. Manning and Alessandra Chichi New rules designed by the U.S. Food and Drug Administration to bring generic drugs to market more quickly could have a significant economic impact on the pharmaceutical industry....

China may ease bank ownership limits.
August 27, 2003... Byline: Shu-Ching Jean Chen in Hong Kong The chairman of a new Chinese banking supervisory body has said for the first time that a single foreign investor can own up to one-quarter of a Chinese bank, further reflecting China's relaxing...

BP gets go-ahead in Russia.
August 27, 2003... Byline: Andrew Bulkeley British oil giant BP plc on Tuesday, Aug. 26, collected a final approval for the formation of its Russian BP-TNK joint venture, the country's third-largest oil producer. As expected, the Russian antimonopoly...

Trial begins against Astar Air.
August 27, 2003... Byline: Jaret Seiberg in Washington Astar Air Cargo faced off Tuesday, Aug. 26, against its U.S. express delivery rivals at the start of a hearing that could decide the financial future of U.S. airlines that do substantial business with...

Ascential-Mercator deal clears antitrust.
August 27, 2003... Byline: The Deal Paris-based Vivendi Universal SA Tuesday said it would recommend the board of its Polish telephone joint venture accept a [Euro]1 billion bid from Germany's Deutsche Telekom AG for a 51% stake in Polish cellular provider...

Bank of Western Australia buy is cleared.
August 27, 2003... Byline: The Deal British bank HBOS plc said the Federal Court of Australia on Tuesday approved its plan to buy out minority shareholders of its 57%-held unit, Bank of Western Australia Ltd. Shareholders had approved the arrangement Aug....

China eyes new bank ownership rules.
August 27, 2003... Byline: The Deal The chairman of a new Chinese banking supervisory body has said for the first time that a single foreign investor can own up to a quarter of a Chinese bank, further reflecting China's relaxing attitude toward foreign...

EC approves Liberty takeover of QVC.
August 27, 2003... Byline: The Deal The European Commission on Tuesday approved plans by Liberty Media Corp. to acquire Comcast Corp.'s 58% stake in television shopping channel QVC Inc. Under the terms of the deal, announced in July, John Malone's...

Heywood Williams parts with Coldseal.
August 27, 2003... Byline: The Deal British windows and doors maker Heywood Williams Group plc said it sold its money-losing retail double-glazing subsidiary Coldseal Ltd. to privately owned Bryco Group in exchange for 19.9% of the merged company. No other...

Holly sells assets to McKee Oil.
August 27, 2003... Byline: The Deal Dallas oil refiner Holly Corp. said Tuesday it sold its retail assets in Utah and Wyoming to privately held McKee Oil Co. of Salt Lake City for $7 million. The assets included 25 operating gas stations and three closed...

Koyo Seiko buys out Northrop venture.
August 27, 2003... Byline: The Deal Japanese power steering systems supplier Koyo Seiko Co. Ltd. said Tuesday it would spend $75 million to buy Northrop Grumman Corp.'s 51% stake in Vonore, Tenn.-based TRW Koyo Steering Systems Co., also known as TKS. Koyo...

Qantas Airways makes ready for disposals.
August 27, 2003... Byline: The Deal Australia's largest airline, Qantas Airways Ltd., said Tuesday it was reviewing its assets in preparation for a sale. Last week, Qantas reported a A$9 million ($5.86 million) loss for the first six months of the year....

Liberty exits Vivendi unit bidding.
August 27, 2003... Byline: Josh Karlen Liberty Media Corp. has withdrawn from the bidding for the Hollywood assets of Vivendi Universal SA ahead of a board meeting that the French conglomerate is scheduled to have Tuesday in Paris. In a press release...

Reichmann weighs Canary Wharf bid.
August 27, 2003... Byline: Brian Cattell U.K. real estate firm Canary Wharf Group plc (http://www.canarywharf.com/mainFrm1.asp?strSelectedArea=News) said Tuesday, Aug. 26, that its chairman and founder Paul Reichmann may launch a takeover offer for the...

TeliaSonera in $117M Baltic deal.
August 27, 2003... Byline: Brian Cattell Nordic telecom giant TeliaSonera AB said Tuesday, Aug. 26, it will pay Motorola Inc. $117 million to acquire the U.S. company's 35% stake in Lithuanian mobile operator UAB Omnitel. The transaction will increase...

The Pantry stocks up with Golden Gallon.
August 27, 2003... Byline: Tara Croft Three years after dropping out of the competition for the Golden Gallon convenience store chain, The Pantry Inc. got a second chance. The Sanford, N.C.-based company said Monday, Aug. 25, that it would buy the...

Mayne to buy NaPro Biotherapeutics cancer drug.
August 27, 2003... Byline: Josey Puliyenthuruthel Mayne Group Ltd., Australia's largest healthcare company, is making a move to expand its pharmaceutical business. Mayne said Tuesday, Aug. 26, it will buy cancer drug paclitaxel from Boulder,...

Berna eyes Shire vaccine unit.
August 27, 2003... Byline: Andrew Morse The CEO of Swiss vaccine maker Berna Biotech AG said Tuesday he might consider buying Shire Pharmaceuticals plc's vaccines unit, which the U.K.-based drug maker said in July it wanted to spin off. "We will look...

Vivendi again tries bidders' patience.
August 27, 2003... Byline: Peter Lauria The long-running auction for the Hollywood assets of Vivendi Universal SA will run a little longer, as the French conglomerate's board said after a meeting Tuesday that it would pursue "further negotiations with the...

Warnaco under pressure again.
August 27, 2003... Byline: Ron Orol in Washington Somebody wants to put Warnaco Group Inc. in play. Small-cap activist investor Daniel Loeb of New York's Third Point Management Co. is pressuring the maker of Speedo swimwear and Calvin Klein underwear...

Movers & Shakers.
August 27, 2003... Byline: Lisa Gewirtz Joining a law firm that almost shares his surname, Henry Kelly has signed on with Kelley Drye & Warren as a partner in the litigation group. Kelly, who is based in Chicago and specializes in telecommunications...

Invenergy buys Teco power plant.
August 27, 2003... Byline: Kelly Holman Teco Power Services, a subsidiary of Tampa Bay, Fla.-based Teco Energy Inc., said Tuesday, Aug. 26, it had agreed to sell its interest in the 370-megawatt Hardee Power Station facility to Invenergy LLC for $115...

Lone Star nears Korean bank deal.
August 27, 2003... Byline: Roger du Mars in Seoul Lone Star Funds is within days of gaining a 51% stake in Korea Exchange Bank (http://www.keb.co.kr/IBS/kefa?gbn=News%0D) for W1.35 trillion ($1.2 billion) in a deal that would give the Dallas-based buyout...

Molton Brown seeks American cheeks.
August 27, 2003... Byline: Jonathan Braude in London Skin-smoother to the stars Molton Brown Ltd., the London soap and make-up brand, has raised [pounds sterling]28 million ($44 million) in private equity backing as part of a [pounds sterling]76 million...

Private Capital People: Aug. 26, 2003.
August 27, 2003... Byline: George White Movers & Shakers: Aug. 25, 2003 (http://www.thedeal.com/NASApp/cs/ContentServer?pagename=TheDeal/TDDArticle/TDStandardArticle&Box1=1020131906455&Box2=1019496876560&c=TDDArticle&cid=1060877630771&p=1014930837289) ...

MRI specialist lands $8.5M.
August 27, 2003... Byline: Sarah Cohen Wilmington, Mass.-based ONI Inc., a manufacturer of specialty MRI systems, said Tuesday, Aug. 26, it has received $8.5 million in venture capital in its first round to include institutional investors. The funds...

Fortinet closes on $30M.
August 27, 2003... Byline: Clifford Carlsen The recent emergence of more sophisticated attacks on computer networks around the world by so-called worms and viruses has heightened interest in computer security. And Fortinet Inc., a Santa Clara, Calif.-based...

Afferent.
August 27, 2003... Byline: The Deal Providence, R.I.-based developer of medical devices Afferent Corp. has raised $1.05 million in new funding. The company makes products to treat chronic neurological dysfunction. The capital comes from the National...

Fortinet.
August 27, 2003... Byline: The Deal Santa Clara, Calif.-based Fortinet Inc. has raised $30 million in a fourth round of venture capital funding, bringing the total funding of the network security hardware maker to $43 million. New investors Redpoint...

ONI.
August 27, 2003... Byline: The Deal Wilmington, Mass.-based ONI Inc., a manufacturer of MRI systems for imaging extremities, has received $8.5 million in venture capital from new investors Galen Partners and Ivy Healthcare Capital, current investor Sage...

Judge denies Exide creditors' delay attempt.
August 26, 2003... Byline: Soma Biswas A bankruptcy court judge denied a bid by creditors of Exide Technologies to halt a drive to confirm a reorganization plan that hands over most of the company's shares to its banks. On Aug. 22 Judge Kevin Carey...

Trustee fights to block Leap reorg.
August 26, 2003... Byline: Terry Brennan The U.S. Trustee is challenging Leap Wireless International Inc.'s plans to turn the company over to secured noteholders. The U.S. Trustee's Office in San Diego is specifically objecting to plans by Leap to...

TelCove seeks to emerge as rollup vehicle.
August 26, 2003... Byline: Jonathan Berke New York money manager Bay Harbour Management will get a 50% stake in TelCove after it emerges from bankruptcy and plans to make a rollup vehicle of the broadband provider, which used to be known as Adelphia...

W.R. Grace wins another extension.
August 26, 2003... Byline: Soma Biswas A bankruptcy court judge has again extended the deadline for specialty chemicals maker W.R. Grace & Co. to file a reorganization plan, giving it until April 1, 2004. The latest extension of Grace's exclusive right...

CEO Shuffle: Aug. 25, 2003.
August 26, 2003... Byline: David Ehrlich Under pressure from federal regulators, Freddie Mac has launched a search for a new CEO. Late Friday, Aug. 22, the McLean, Va.-based mortgage finance company said the Office of Federal Housing Enterprise Oversight...

Ashford prices; LECG, Sirva file for offerings.
August 26, 2003... Byline: Frances A. McMorris Investors in the new issues markets will say goodbye to summer with a final initial public offering valued at $402.5 million from Ashford Hospitality Trust Inc. The Dallas-based real estate investment...

Clear sailing.
August 26, 2003... Byline: Robert Willens Leucadia National Corp. and WilTel Communications Group Inc. have reached an agreement under which the latter will become a wholly owned subsidiary of the former. The transaction will be a reverse merger in which...

Dana deal draws FTC scrutiny.
August 26, 2003... Byline: Jaret Seiberg in Washington Although ArvinMeritor Inc. only notified the government Aug. 22 about its hostile takeover offer for Dana Corp., the Federal Trade Commission has been investigating the deal for several weeks and may...

Murdoch to revamp Star India.
August 26, 2003... Byline: Josey Puliyenthuruthel Rupert Murdoch's head of operations for News Corp. in India said Monday, Aug. 25, that the company would bow to new media rules issued over the weekend by the government that require majority ownership by...

Hanaro scrambles as debt falls due.
August 26, 2003... Byline: Roger du Mars in Seoul With W117 billion ($100 million) in debt due Tuesday, Hanaro Telecom Inc. hit the phones hard Monday in search of money as foreign and local predators circle South Korea's No. 2 Internet service provider....

DealEstate: Aug. 25, 2003.
August 26, 2003... Byline: theDeal.com staff August 25 First Union Real Estate Equity announces receipt of proposal of Corporex Companies First Union Real Estate Equity and Mortgage Investments, which recently saw a merger proposal blocked by a...

Pitney Bowes buys DDD in rollup spree.
August 26, 2003... Byline: Cheryl Meyer Postage equipment giant Pitney Bowes Inc. continued its lengthy acquisition spree Monday, Aug. 25, buying mail services provider DDD Co. for $49.5 million -- yet another in a string of deals totaling about $750...

Deutsche Telekom bids for PTC.
August 26, 2003... Byline: Andrew Bulkeley in Berlin and Josh Karlen Deutsche Telekom AG said Monday, Aug. 28, that it offered [Euro]1 billion ($1.1 billion) to acquire full control of Central Europe's largest mobile phone operator, Polska Telefonya Cyfrowa...

Tenet to unload 5 hospitals.
August 26, 2003... Byline: Andrew Morse Embattled hospital giant Tenet Healthcare Corp. (http://www.tenethealth.com/TenetHealth/PressCenter/PressReleases) agreed Monday, Aug. 25, to sell five hospitals operated by its subsidiaries to Health Management...

Fulton Financial to buy Virginia bank.
August 26, 2003... Byline: David Ehrlich Lancaster, Pa.-based Fulton Financial Corp. announced its second acquisition of the year Monday, agreeing to buy Resource Bankshares Corp. in an all-stock deal valued at $195.6 million. The latest transaction, which...

Patina picks up Cordillera Energy.
August 26, 2003... Byline: Claire Poole Denver-based explorer Patina Oil & Gas Corp. said late Monday, Aug. 25, it agreed to acquire all the assets of crosstown rival Cordillera Energy Partners LLC for $240.5 million in cash and five-year warrants to...

McData scores 3 deals.
August 26, 2003... Byline: Sarah Cohen Storage software maker McData Corp. promised back in February it would announce a number of deals this year to ensure it remained competitive with the giants of the industry. On Monday, Aug. 25, the company finally...

Schneider targets Asia with $489M deal.
August 26, 2003... Byline: Renee Cordes Extending its reach in Asia, French electrical engineering company Schneider Electric SA agreed Monday, Aug. 28, to pay [Euro]450 million ($489 million) in cash to acquire an Australia-based electrical wiring devices...

Deutsche Bank angles for Chinese IPOs.
August 26, 2003... Byline: Andrew Bulkeley in Berlin After gaining access early in August to China's main stock market, Frankfurt-based Deutsche Bank AG is in talks on an underwriting venture for Chinese initial public offers. Deutsche Bank gave no...

Advanstar wins Thomson titles.
August 26, 2003... Byline: Peter Lauria Unlike some other bidders, Advanstar Communications Inc. had no problems with the auction for Thomson Corp.'s healthcare publications, agreeing Monday, Aug. 25, to acquire the titles for $135 million cash. Of...

Lukoil snaps up Beopetrol.
August 26, 2003... Byline: Heather O'Brian in Milan The Serbian government agreed Monday, Aug. 25, to sell a 79.5% stake in oil storage and filling station company Beopetrol to Russia's Lukoil OAO for about [Euro]207 million ($225 million). Beopetrol,...

DBAG bags Babcock Borsig unit.
August 26, 2003... Byline: Andrew Bulkeley in Berlin German private equity house Deutsche Beteiligungs AG agreed Monday, Aug. 25, to fund a buyout of the power plant maintenance division of Babcock Borsig AG, the last significant asset of the bankrupt...

Vestar moves early on Ocean Spray.
August 26, 2003... Byline: Josh Kosman Ocean Spray Cranberries Inc.'s board is talking to Vestar Capital Partners about selling a large minority stake in its juice business to the New York buyout firm, sources said. The talks are being held while a...

Skycross raises $10.5M.
August 26, 2003... Byline: Clifford Carlsen Military technology spinoff SkyCross Inc. has raised $10.5 million from existing investors to expand sales and continue development of wireless antenna technology for cellular handsets and local area networks....

Pharma Coley near 5th round close.
August 26, 2003... Byline: Katherine Goncharoff Wellesley, Mass.-based Coley Pharmaceutical Group Inc., a biopharmaceutical firm, has closed on $30 million of a $35 million, fifth round of funding, and expects to close on the remainder within 30 days. ...

Columbia wades deeper into telecom.
August 25, 2003... Byline: Chris Nolter In a move that could pave the way for CTC Communications Corp. to exit Chapter 11 protection later this year, the telecom announced Friday, Aug. 22, that it has received court approval for an investment totaling $44...

Polaroid report undercuts 'fire sale' claims.
August 25, 2003... Byline: Shanon D. Murray The court-appointed examiner in Polaroid Corp.'s bankruptcy said in an investigative report Friday that the photographic products maker's accounting practices did not undervalue or result in an inappropriate...

Lenders jockey for Mirant DIP.
August 25, 2003... Byline: Soma Biswas Mirant Corp. might have been a big flameout as a public company, but while under bankruptcy protection, it has become very popular with providers of debtor-in-possession financings. In fact, even though Mirant...

MCSi files reorg plan.
August 25, 2003... Byline: Greg Johnson MCSi Inc. said Friday, Aug. 22, that it has filed a reorganization plan that leaves its bankers owning the entire company. The Atlanta network services company said it already has the support of bankers who are...

DaimlerChrysler settles suits.
August 25, 2003... Byline: Frances A. McMorris So was one of the paramount mergers of 1998 really a takeover after all? When Chrysler Corp. and Daimler-Benz AG combined in a $36 billion merger of equals that year, many observers questioned whether the...

FCC phone rules draw static.
August 25, 2003... Byline: Ron Orol in Washington Telecom industry players may agree on only one aspect of the Federal Communication Commission's new local phone and broadband competition rules: Everyone's got something to bitch about. The rules,...

CI buys Assante's Canadian funds.
August 25, 2003... Byline: Peter Moreira A year after it bought the asset management arm of Sun Life Financial Inc., Toronto-based CI Fund Management Inc. has announced a trio of acquisitions that will propel it into second place among Canadian fund...

Abbott to spin off hospital products.
August 25, 2003... Byline: Andrew Morse Drug giant Abbott Laboratories said Aug. 22 it would spin off its hospital products business, creating a stand-alone company with more than $2.5 billion in global sales and boosting the parent's financial...

Ontario court approves Corel sale.
August 25, 2003... Byline: David Shabelman The Ontario Superior Court of Justice on Friday, Aug. 22, cleared Vector Holdings LLC's $97.5 million deal to buy Corel Corp. despite last-gasp opposition from disgruntled shareholders. The transaction, which...

Vivendi's choice: cash or value.
August 25, 2003... Byline: Richard Morgan Insiders don't expect the curtain to come down on the auction of Vivendi Universal SA's Hollywood assets just because the Paris-based conglomerate's board meets Tuesday. But they do expect either NBC or Edgar...

ArvinMeritor hits back after Dana suit.
August 25, 2003... Byline: Jaret Seiberg ArvinMeritor Inc. said Aug. 22 that Dana Corp. management is trying to block its $4.4 billion hostile takeover by unfairly accusing the auto parts supplier of misleading investors about the deal. "Dana's board...

Deals of the week: Aug. 22, 2003.
August 25, 2003... Byline: Matthew Wurtzel As the summer crawls to an end, dealmaking remains sluggish. No deals exceeded $1 billion the week ending Aug. 22. Nonetheless, the top five deals were larger than the prior week, which was affected by an...

Movers & Shakers: Aug. 25, 2003.
August 25, 2003... Byline: Lisa Gewirtz Like many bankers, including possibly Credit Suisse First Boston's famed junk bond king, Bennett Goodman, Christian Dyvig is ditching working at an uber investment bank to get into private equity. Previously the head...

Rayovac to acquire Remington.
August 25, 2003... Byline: Kelly Holman In a bid to diversify and match the product lines of its competitors, Rayovac Corp. has agreed to acquire shaver maker Remington Products Co. LLC in a deal worth $322 million including debt. The sale will allow...

Yucaipa wants proof of better Dominick's bid.
August 25, 2003... Byline: Jonathan Berke Yucaipa Cos. said Friday, Aug. 22, it would help Dominick's Finer Foods Inc.'s acquirer with labor talks if the investment banker for Dominick's parent proves the bid exceeds Yucaipa's. The announcement came...

Private Equity briefs: August 22, 2003.
August 25, 2003... Byline: The Deal staff 3i in talks with Nestor Healthcare British private equity firm 3i Group plc and the U.K.'s biggest medical and nursing personnel agency, Nestor Healthcare Group plc, maintained silence Aug. 22 on a report in a...

Top in Tech: week ended Aug. 22.
August 25, 2003... Byline: Paul Bonanos There were few surprises in technology dealmaking over the past week. On the side of the unexpected were EchoStar Communications Corp.'s offer for bankrupt Loral Space & Telecommunications Ltd. and Integrated Defense...

Valere Power gets charged up.
August 25, 2003... Byline: Clifford Carlsen Valere Power Inc. has charged up with an additional $6 million from J.P. Morgan Partners of San Francisco, to close its third venture capital round at $17 million, as it expands its market and aims for...

ABB settlement on hold.
August 22, 2003... Byline: Soma Biswas A $1.2 billion settlement between Swiss engineering giant ABB Ltd. and asbestos claimants is blocked until a Pennsylvania court hears appeals against the deal. The appeals challenge the July 31 confirmation of the...

Judge OKs procedures for NextWave sale.
August 22, 2003... Byline: Chris Nolter The bidding procedures in NextWave Telecom Inc.'s auction of spectrum licenses in 34 markets won approval in the U.S. Bankruptcy Court for the Southern District of New York on Wednesday, Aug. 20. Cingular...

Pillowtex, creditors gird for showdown.
August 22, 2003... Byline: Greg Johnson Creditors of Pillowtex Corp. will head to court Aug. 28 for a showdown with a group of liquidators. The official committee of unsecured creditors is blasting a planned sale of the bankrupt Kannapolis, N.C., maker...