The Daily Deal articles from December 2003

The Daily Deal archives from December 2003

WorldCom, Verizon settle.
December 31, 2003... Byline: Chris Nolter Whether it's holiday season-inspired goodwill or its impending exit from bankruptcy as MCI, WorldCom Inc. in any case has resolved a 6-year-old dispute with rival Verizon Communications Inc. that will avert...

Mirant will appeal Pepco ruling.
December 31, 2003... Byline: Donna Block in Washington Bankrupt energy merchant Mirant Corp. said it will appeal a U.S. District Court ruling that gives federal regulators authority to decide whether to cancel its money-losing contracts with Pepco Holdings...

NextWave asks to extend exclusivity.
December 31, 2003... Byline: Chris Nolter NextWave Telecom Inc. has asked a bankruptcy judge to extend its exclusive period to file a plan of reorganization by 45 days, from Jan. 9 to Feb. 27, 2004. Judge Adlai Hardin of the U.S. Bankruptcy Court for the...

Shareholders could keep Seitel.
December 31, 2003... Byline: Matt Miller Shareholders of bankrupt Seitel Inc. will have the chance to reacquire control of the Houston-based seismic data company under a novel plan proposed in a Delaware bankruptcy court on Monday. The proposal would pay...

US Air loses pension challenge.
December 31, 2003... Byline: Lou Whiteman A Virginia judge has ruled against a challenge US Airways Group Inc. has lodged regarding the Pension Guaranty Benefit Corp.'s estimate of the carrier's pension shortfall, a decision that could cost some of the...

Judge approves CheckMate financing.
December 31, 2003... Byline: Donna Block A California judge Tuesday approved bankrupt CheckMate Staffing Inc.'s request to get post-petition financing from Wells Fargo Foothill. In a first-day hearing in the U.S. Bankruptcy Court in Santa Ana, Calif.,...

Shell cuts Thai exposure.
December 31, 2003... Byline: Shu-Ching Jean Chen in Hong Kong Thai oil major PTT Exploration and Production PCL agreed on Tuesday, Dec. 29, to buy out a 75% stake held by its joint venture partner of two decades, Royal Dutch/Shell Group, for $205 million. ...

December 2003 M&A Calendar.
December 31, 2003... Byline: Gerald C. Magpily www.TheDeal.com

McGraw-Hill sells stake in HQ.
December 31, 2003... Byline: Lou Whiteman McGraw-Hill Cos. has sold its stake in its midtown Manhattan headquarters building, in a deal that raised $450 million for the company's core publishing businesses. McGraw-Hill announced late Monday that it would...

CD&R sells Kinko's to FedEx.
December 31, 2003... Byline: Vyvyan Tenorio and David Carey After a long, rocky ride, New York private equity firm Clayton, Dubilier & Rice is set to triple its money by its sale of copy-center chain Kinko's Inc. to FedEx Corp. FedEx and Clayton Dubilier...

Manulife buys Atlanta office tower.
December 31, 2003... Byline: Lou Whiteman Canadian financial services firm Manulife Financial Inc. on Tuesday struck a deal to broaden its real estate portfolio in the Southeast U.S., acquiring an Atlanta office building for $118 million. Toronto-based...

InteliStaf acquires RehabCare unit.
December 31, 2003... Byline: Lou Whiteman RehabCare Group Inc. on Tuesday, Dec. 30, agreed to combine its money-losing healthcare staffing business with InteliStaf Healthcare Inc. to create a company with $450 million in annual sales. Terms of the deal...

Lehman, Starwood in Le Meridien deal.
December 31, 2003... Byline: Robert Walzer and Matt Miller Lehman Brothers Holdings Inc. and Starwood Hotels & Resorts Worldwide Inc. said Dec. 30 they have acquired [pounds sterling]750 million ($1.3 billion) of senior debt of troubled U.K.-based Le Meridien...

Parmalat shares suspended.
December 30, 2003... Byline: Heather O'Brian in Milan and Rob Walzer Italian stock market officials suspended indefinitely Parmalat Finanziaria SpA's shares and bonds from trading on Monday, Dec. 29, after the bankrupt Italian food group's new administrator...

Imperial Home files again.
December 30, 2003... Byline: Terry Brennan Cash-strapped Imperial Home Decor Group Holdings Inc. filed for Chapter 11 for the second time in four years with plans to sell its bankrupt U.S. operations for $8.5 million. North America's largest residential...

Judgment call: Celebrity justice.
December 30, 2003... Byline: Robert A. Mintz When a judge denied a defense request to toss out two counts of the Martha Stewart indictment in November, few in the legal world were surprised. Her arguments, including the idea that her free-speech right to...

Vitesse nets Cicada for $66M.
December 30, 2003... Byline: David Carey Vitesse Semiconductor Corp. said Monday, Dec. 29, that it would pay $66 million in cash for Cicada Semiconductor Corp., a smaller rival in the high-speed-network equipment sector. The deal is expected to close...

Meridian, I-trax to merge.
December 30, 2003... Byline: David Carey Meridian Occupational Healthcare Associates Inc., a healthcare services concern backed by Warburg Pincus LLC, plans to merge with I-trax Inc., a much smaller, publicly traded business, in a deal valued at about $80...

Domain rides life sciences wave.
December 30, 2003... Byline: Katherine Goncharoff Domain Associates LLC, a Princeton, N.J.-based venture capital firm focused on life sciences, has announced the final closing of a $500 million VC fund, its sixth and largest investment vehicle raised to...

Parmalat seeks bankruptcy protection.
December 25, 2003... Byline: Heather O'Brian Italian food group Parmalat Finanziaria SpA said Wednesday, Dec. 24, that its main operating unit had filed for bankruptcy protection in a Parma court, as criminal investigations by prosecutors into alleged past...

Creditors get more under new Air Canada offer.
December 25, 2003... Byline: Laura King in Toronto A revised bid by Hong Kong businessman Victor Li for an equity stake in Air Canada gives creditors a chance to own just over 66% of the restructured airline and recover at least 25.7% of what they are owed,...

Smelter GNA files for Ch. 11.
December 25, 2003... Byline: Soma Biswas Golden Northwest Aluminum Inc., a privately owned smelting company based in Dalles, Ore., filed a Chapter 11 petition Monday, Dec. 22, in the U.S. Bankruptcy Court for the District of Oregon in Portland. Golden...

TJX gets Bob's; judge kills sale of FAO unit.
December 25, 2003... Byline: Soma Biswas The TJX Companies Inc., which operates several off-price retail chains such as Framingham, Mass.-based T.J. Maxx, said it completed the acquisition of Bob's Stores, a Meriden, Conn.-based retail chain, on Wednesday,...

Judgment call: Split screen.
December 25, 2003... Byline: Robert Willens Letter Ruling 200350002 -- which appears to be the ruling issued to General Motors Corp. in connection with the "reverse Morris Trust" transaction involving its Hughes Electronics Corp. subsidiary that it is...

Skandia sells Japanese unit.
December 25, 2003... Byline: Charles Smith in Tokyo Swedish life insurer Skandia Insurance Co. said Wednesday, Dec. 24, it had agreed to sell its Japanese subsidiary to Tokio Marine and Fire Insurance Co., the largest Japanese non-life insurer, in a move...

Hana considers bid for LG Card.
December 25, 2003... Byline: Roger du Mars in Seoul South Korea's Hana Bank said Wednesday, Dec. 24, that it would consider a bid for LG Card, the credit card group hovering on the brink of insolvency. Creditors put heavily indebted LG Card on the block...

Israelis may get options on bank shares.
December 25, 2003... Byline: Neal Sandler in Tel Aviv Hanukah, like Christmas, is traditionally a time of giving gifts and Israel's Finance Ministry is considering a plan that would grant every Israeli adult an option to buy shares in the country's second...

Invitrogen buys BioReliance for $500M.
December 25, 2003... Byline: Clifford Carlsen Carlsbad, Calif-.based Invitrogen Corp. said Wednesday, Dec. 24, it is buying BioReliance Corp., a profitable laboratory and production services business, for $500 million including debt. BioReliance's...

Westar sells security unit to Quadrangle.
December 25, 2003... Byline: Heidi Moore and Vipal Monga Ending a long and complicated auction, Quadrangle Group will buy a majority stake in security company Protection One from troubled Kansas utility Westar Energy Corp. for $120 million. Protection...

Colony Cap pays $280M for Vegas Hilton.
December 25, 2003... Byline: Heidi Moore The Las Vegas Hilton, where Elvis Presley staged his comeback in the 1970s, will be sold to Los Angeles-based private equity firm Colony Capital for $280 million, the parties said Wednesday, Dec. 24. The price is...

California Amp gets Vytek in $77M stock deal.
December 25, 2003... Byline: Vipal Monga California Amplifier Inc., a Camarillo, Calif.-based manufacturer of satellite television and wireless equipment, has agreed to acquire San Diego-based Vytek Corp. in a bid to expand its customer base and engineering...

Investor group to revive Penthouse.
December 24, 2003... Byline: Peter Lauria Penthouse magazine publisher General Media Inc. filed a proposed plan of reorganization Tuesday which would, if approved, hand control of the company over to an investor group mostly composed of former creditors. ...

Verestar's light fades in bankruptcy court.
December 24, 2003... Byline: Jonathan Berke Satellite networking company Verestar Inc., a unit of troubled American Tower Corp., filed for bankruptcy protection Monday after former private equity-backed predator SkyTerra Communications Inc. terminated a deal...

Parmalat to seek bankruptcy protection.
December 24, 2003... Byline: Heather O'Brian Italian food group Parmalat Finanziaria SpA said Tuesday, Dec. 23, that it would seek bankruptcy protection amid criminal investigations by prosecutors into alleged past financial misdeeds at the company. ...

Sovereign loses SK Corp challenge.
December 24, 2003... Byline: Roger du Mars in Seoul A Seoul court rejected on Tuesday, Dec. 23, a court injunction filed by Sovereign Asset Management Ltd. to stop oil company SK Corp. selling shares to friendly buyers to fend off an attack on its board. ...

Judgment call: new regimes.
December 24, 2003... Byline: Jeffrey Newman and Susan Lennon Creatively designed "split dollar" life insurance programs have been a tax-effective means of providing income and/or insurance coverage for retired executives. There are two basic types of...

Sage buys Computer Associates unit.
December 24, 2003... Byline: Lisa Clifford British accounting software company Sage Group plc said Tuesday, Dec. 23, it would beef up its North American business through the [pounds sterling] 62.5 million ($110 million) acquisition of a Computer Associates...

Lone Star's KEB exits Pacific Union.
December 24, 2003... Byline: Roger du Mars in Seoul Lone Star's KEB exits Pacific Union by U.S. private equity-owned Korea Exchange Bank, the nation's fifth-largest lender, on Tuesday, Dec. 23, sold its 62.4% stake in Los Angeles-based...

iSoft's $1.2B wins Torex.
December 24, 2003... Byline: Andrew Bulkeley Despite regulatory challenges from rivals, a majority of shares in U.K. computer services company Torex plc were tendered Tuesday, Dec. 23, as part of the company's [pounds sterling]660 million ($1.2 billion)...

Sage grabs CA unit.
December 24, 2003... Byline: Lisa Clifford and Cheryl Meyer British accounting software company Sage Group plc, announced Tuesday, Dec. 23, that it would bolster its North American business through a [pounds sterling]62.5 million ($110 million) acquisition of...

Enterra expands energy holdings.
December 24, 2003... Byline: Laura King in Toronto Calgary-based Enterra Energy Trust said Tuesday, Dec. 23, that it is buying several oil and gas properties in east-central Alberta for US$15 million from an undisclosed company. Several U.S. energy...

Nasdaq denies NYSE deal.
December 24, 2003... Byline: Ron Orol The Nasdaq Stock Market on Tuesday, Dec. 23, denied a published report that it is exploring a deal with the New York Stock Exchange. "The unverified story based on rumors and speculation regarding a Nasdaq and NYSE...

Apax, VCs invest in Cartesis.
December 24, 2003... Byline: Lisa Clifford in London Apax, VCs invest in Cartesis byin London Private equity firm Apax Partners Inc. said Tuesday, Dec. 23., that it is leading a consortium to acquire Cartesis, a French business performance...

Oak Hill bags Duane Reade for $700M.
December 24, 2003... Byline: Kelly Holman Duane Reade Inc., New York's largest drug store chain, said Tuesday, Dec. 23, that it had agreed to be acquired by Oak Hill Capital Partners LP in a deal valued at more than $700 million, including debt financing....

Vestar Capital places $200M bet on Solo Cup.
December 24, 2003... Byline: Dennis Fitzgerald and Kelly Holman Solo Cup Co., the Highland Park, Ill.-based maker of the ubiquitous disposable plastic cups, said late Monday, Dec. 22, that it would acquire a disposable products rival, Owings Mills, Md.-based...

Air Canada again favors Trinity bid.
December 23, 2003... Byline: Laura King in Toronto For the second time, the board of insolvent Air Canada has approved an offer from Hong Kong businessman Victor Li for an equity stake in the airline and rejected a competing bid by Cerberus Capital Management...

Redback poised to emerge.
December 23, 2003... Byline: Shanon D. Murray Redback Networks Inc., a broadband networking systems company, said Monday, Dec. 22, it expects to emerge from bankruptcy protection by Jan. 6. Visiting Judge Charles G. Case II in the U.S. Bankruptcy Court...

Gores must revise C&W USA bid.
December 23, 2003... Byline: Shanon D. Murray A bankruptcy judge Monday, Dec. 22, revamped Cable & Wireless USA Inc.'s bidding procedures for the proposed sale of substantially all its assets. When its parent company, London-based Cable & Wireless plc,...

New year, new job for Majoras.
December 23, 2003... Byline: Jaret Seiberg in Washington The Bush administration's longest-serving antitrust official is returning to private practice at the end of the month. Deborah Majoras, the principal deputy attorney general for antitrust, will...

CIBC settles Enron charges.
December 23, 2003... Byline: Shanon D. Murray Canadian Imperial Bank of Commerce has agreed to pay $80 million to settle charges of aiding and abetting Enron Corp.'s accounting fraud, the Securities and Exchange Commission said Monday, Dec. 22. In...

Daimler exec questioned on merger notes.
December 23, 2003... Byline: David Marcus Senior DaimlerChrysler AG executive Gary Valade appeared in federal court in Wilmington, Del., Monday to discuss notes he had taken on the 1998 merger talks between Chrysler Corp. and Daimler-Benz AG. Valade...

Ruling clears Deutsche Post for growth.
December 23, 2003... Byline: Jaret Seiberg in Washington A federal administrative law judge has cleared the way for Deutsche Post World Net AG to continue its U.S. expansion. Judge Burton S. Kolko ruled Dec. 19 that Astar Air Cargo Inc., formerly known...

Pfizer buys Esperion for $1.3B.
December 23, 2003... Byline: Andrew Morse Pfizer Inc., the world's largest drug company, said Sunday, Dec. 21, it would pay $1.3 billion in cash to acquire a Michigan-based startup with a promising drug that has proven to be effective at reversing arterial...

Spanish bank wins Atlantico.
December 23, 2003... Byline: Danny Fortson in Barcelona Spain's Banco Sabadell SA made a [Euro]1.5 billion ($1.86 billion) bid that beat a host of domestic and foreign bidders for coveted Banco Atlantico SA, the buyer announced Monday, Dec. 22. ...

Indonesia's Medco chases Novus.
December 23, 2003... Byline: Shu-Ching Jean Chen The largest privately owned oil and gas company in Indonesia, PT Medco Energi Internasional TBK, Monday, Dec. 22 launched an unsolicited A$443 million ($327.4 million) cash and debt takeover bid for...

Blue Star advances on Ssangyong.
December 23, 2003... Byline: Roger du Mars in Seoul Creditors of Ssangyong Motor Co. Monday, Dec. 22 signed a memorandum of understanding with China National Blue Star Group to buy a controlling stake in South Korea's No. 4 carmaker. Blue Star, which...

Canary Wharf shareholders back sale.
December 23, 2003... Byline: Brian Cattell in London Morgan Stanley tightened its grip on Canary Wharf plc on Monday, Dec. 22, after shareholders of the U.K. property company approved an asset disposal that the investment bank had set as a condition of it...

Sabadell wins Banco Atlantico.
December 23, 2003... Byline: Danny Fortson in Barcelona Spain's Banco de Sabadell SA made a [Euro]1.5 billion ($1.9 billion) offer that beat a host of domestic and foreign bidders for the highly sought-after Banco Atlantico SA, the buyer said. Sabadell,...

News Corp. closes DirecTV deal.
December 23, 2003... Byline: Ron Orol in Washington and Cheryl Meyer in Los Angeles Days after the Federal Communications Commission gave its conditional blessing to the transaction, News Corp. completed its long-awaited $6.6 billion deal to take control of...

For Movado, it's time to buy.
December 23, 2003... Byline: Yvette Kantrow Movado Group Inc. said late Monday, Dec. 22, it agreed to acquire luxury watch brand Ebel for $47.3 million in cash from LVMH Moet Hennessy Louis Vuitton. Paramus, N.J.-based Movado, which makes watches under...

GTCR profits in CuraScript exit.
December 23, 2003... Byline: Andrew Morse Express Scripts Inc., one of the nation's largest pharmacy benefits managers, said Monday, Dec. 22, it would purchase specialty drug distributor CuraScript Pharmacy Inc. and a related company for $335 million in...

Caxton-Iseman clinches Nortek unit.
December 23, 2003... Byline: Tara Croft Building products supplier Nortek Inc. said Monday, Dec. 22, it had reached an agreement to sell its windows, doors and vinyl siding business to New York buyout shop Caxton-Iseman Capital Inc. for $570 million. ...

UAL applies for loan guarantee.
December 22, 2003... Byline: Peter Moreira The parent of United Airlines on Thursday, Dec. 18, applied for a $1.6 billion federal loan guarantee as part of its plan to borrow $2 billion from commercial lenders and exit bankruptcy. Chicago-based UAL...

Kaiser Aluminum sells Valco unit.
December 22, 2003... Byline: Greg Johnson Kaiser Aluminum Corp. said Friday, Dec. 19, it has agreed to sell its 90% stake in Ghana aluminum smelter Volta Aluminum Co. Ltd., or Valco, to the Republic of Ghana for between $33 million and $100 million. The...

Crystal clear to buy EliteAgents.
December 22, 2003... Byline: Terry Brennan A New Jersey judge on Dec. 19 approved a $500,000 stalking-horse offer from Crystal Pond Capital Partners LLC to buy EliteAgents Mortgage Service Inc. Judge Novalyn Winfield in the U.S. Bankruptcy Court for the...

Mississippi Chemical to keep one plant.
December 22, 2003... Byline: Terry Brennan Mississippi Chemical Corp. on Friday, Dec. 19, pulled one of its sale motions after two investors injected $70 million into the embattled fertilizer supplier. DDJ Capital Management LLC of Wellesley, Mass., and...

CPUC approves PG&E settlement.
December 22, 2003... Byline: Cheryl Meyer After months of tussling with Pacific Gas & Electric Co., the California Public Utilities Commission finally approved a modified settlement agreement that could pave the way for the utility to emerge from bankruptcy....

White Hen Pantry sale closes.
December 22, 2003... Byline: Jonathan Berke An Angelo, Gordon & Co.-led consortium has closed the $45 million purchase of White Hen Pantry Inc. from its bankrupt parent, Clark Retail Enterprises Inc. The group consists of a private equity fund controlled by...

Waterlink sells remaining units.
December 22, 2003... Byline: Greg Johnson Columbus, Ohio, waste water and air purification system supplier Waterlink Inc. has reached an agreement to sell its last divisions to Westport, Conn., investment firm Compass Group International LLC for about $25.8...

TJX may intercept Bob's Stores.
December 22, 2003... Byline: Jonathan Berke In an auction that gets more bizarre by the day, bankrupt Bob's Stores Inc. just may end up in the hands of stalking-horse-bidder-cum-runner-up TJX Cos., and not in those of a Dick's Sporting Goods Inc.-led...

Court OKs sale of Agway Energy units.
December 22, 2003... Byline: Greg Johnson Agway Inc. has won approval to sell its three Agway Energy divisions to Suburban Propane Partners LP for $206 million. The sale to Suburban, the third-largest propane seller in the U.S., is set to close Dec. 23....

Air Canada awaits new Li offer.
December 22, 2003... Byline: Laura King Insolvent Air Canada on Friday, Dec. 19, awaited a sweetened offer from Trinity Time Investments, a company controlled by Hong Kong businessman Victor Li, with which the carrier already has a deal. Under the...

Precision Tool files for Ch. 11.
December 22, 2003... Byline: Paul Burton Precision Tool, Die and Machine Co., the Kentucky metal stamping unit of Mexico's Elamex SA de CV, has filed for Chapter 11. In first-day hearings on Friday, Dec. 19, Judge Robert T. Stoberg in the U.S. Bankruptcy...

In crisis, Parmalat hires adviser.
December 22, 2003... Byline: Heather O'Brian in Milan and Soma Biswas in New York The financial situation at Italian dairy group Parmalat Finanziaria SpA became ever murkier Friday, Dec. 19, after the company revealed a [Euro]4 billion ($5 billion) hole in...

Numico refinances its debt.
December 22, 2003... Byline: Tara Croft After selling off troubled U.S. vitamin chain General Nutrition Cos. in October, Dutch food group Royal Numico NV has continued to try and reduce debt. The latest step came with the company's announcement Friday,...

Parmalat funds vanish.
December 22, 2003... Byline: Heather O'Brian in Milan The financial situation at Italian dairy group Parmalat Finanziaria SpA grew murkier after the company on Friday, Dec. 19 revealed a [Euro]billion euro ($4.9 billion) hole in the accounts of an offshore...

CSFB names new managing directors.
December 22, 2003... John J. Mack, chief executive officer of New York investment bank Credit Suisse First Boston, announced in a press release Friday, Dec. 19, the appointment of 125 managing directors. The new managing directors are: COMPANY: Credit Suisse...

George Shaheen: The missing years.
December 22, 2003... Byline: Matt Miller As head of Webvan Group Inc., George Shaheen oversaw the Internet's most expensive flop. As a director of Siebel Systems Inc., Shaheen infuriated shareholders who discovered he had gained and then sold hundreds of...

Kintera prices IPO at $7 a share.
December 22, 2003... Byline: Peter Moreira Online fundraising advisory company Kintera Inc. said on Friday, Dec. 19, its initial public offering of 5 million shares will be priced at $7 each. Including an over-allotment option of 750,000 shares, the...

IPO Outlook: Dec. 22, 2003.
December 22, 2003... TRW Automotive Holdings Livonia, Mich.-based TRW Automotive Holdings Corp. raised the size of its pending initial public offering to $805 million from $350 million. The automotive systems supplier didn't indicate the total number of...

Kintera prices low but trades high.
December 22, 2003... Byline: David Shabelman Kintera Inc., a provider of Internet-based software for nonprofit organizations, priced below its anticipated offering price the night of Dec. 18, but once it trading started Dec. 19 it didn't stay down very long....

ProCentury.
December 22, 2003... Byline: The Daily Deal Westerville, Ohio-based insurance company ProCentury Corp. filed for an estimated $107.5 million IPO. In a filing Dec. 18 with the Securities and Exchange Commission, the company didn't specify the number of shares...

TRW Automotive Holdings.
December 22, 2003... Byline: The Daily Deal Livonia, Mich.-based TRW Automotive Holdings Corp. raised the size of its pending initial public offering to $805 million from $350 million. The automotive systems supplier didn't indicate the total number of...

Into the woods.
December 22, 2003... Byline: Lawrence K. Cagney Private companies rarely worried about golden parachute excise taxes because the change-of-control payments made to their executives could be exempted from these taxes by getting the package approved by...