The Daily Deal articles from January 2005

The Daily Deal archives from January 2005

Court OKs US Airways pay cuts.
January 7, 2005... Byline: Lou Whiteman US Airways Group Inc. received some vital financial support Thursday, Jan. 6, when a bankruptcy judge cleared the way for the airline to cancel its labor agreement with its mechanics, a move that would buy the...

Judge to decide on Yukos filing.
January 7, 2005... Byline: Jonathan Berke A judge on Thursday, Jan. 6, decided to begin hearings Feb. 16 on whether the bankruptcy petition of OAO NK Yukos should be dismissed. Lawyers for Deutsche Bank AG argued before Judge Letitia Clark of the U.S....

Toys "R" Us stores show promise.
January 7, 2005... Byline: Brenon Daly In a conference call, chief executive John Eyler declined to field questions about the "strategic review" and restructuring of the toy stores announced in August. He did, however, put in a mild plug for the division....

Layoff roundup: Jan. 6, 2005.
January 7, 2005... Byline: David Ehrlich First-time U.S. jobless claims were up by 43,000 last week, far ahead of analysts' expectations and hitting the highest level since late September. The initial claims rose to 364,000 in the week ended Jan. 1, up...

FTC draws line in sand for CB&I.
January 7, 2005... Byline: Donna Block in Washington In a case with important ramifications for merger enforcement, the Federal Trade Commission on Thursday, Jan. 6, upheld its ruling that Chicago Bridge & Iron Co. NV's 2001 acquisition of a unit owned by...

Daddy dearest.
January 7, 2005... Byline: Alain Sherter and Jeffrey Kanige In this edition, The Daily Deal cuts the ribbon on a new weekly column. As its name suggests, Power Broker will center on the politicians, financiers, middlemen and other machers who make New York...

StanChart seen winning Korea First Bank.
January 7, 2005... Byline: Reuters SEOUL -- Standard Chartered plc is likely to win a battle with HSBC Holdings plc to buy Korea First Bank, with a bid of $3.3 billion or more, a South Korean newspaper reported on Thursday, Jan. 6. "They have nearly...

M&A Calendar: 2005.
January 7, 2005... Byline: compiled by TheDeal.com news staff www.TheDeal.com

REITs circle Pathmark.
January 7, 2005... Byline: Vipal Monga and Jonathan Berke The auction of Carteret, N.J.-based Pathmark Stores Inc. is drawing interest from REITs who see untapped value in the supermarket operators' properties and lease arrangements, sources said. Boca...

Japan to sell NTT shares.
January 7, 2005... Byline: Martin Foster in Tokyo The Japanese government may sell [yen]506.24 billion ($4.86 billion) of Nippon Telegraph and Telephone Corp. shares starting in April, capping off a two-decades-old process to sell down its stake to 33%....

Alltell-WW could be all-American.
January 7, 2005... Byline: Chris Nolter Should Little Rock, Ark.-based Alltel Corp. succeed in a $6 billion buyout of Western Wireless Corp., the combined companies could sell or spin off operations worth billions of dollars in the U.S. and overseas. ...

European rivals stock up for LSE.
January 7, 2005... Byline: Danny Fortson in London and Andrew Bulkeley in Berlin After a Christmas respite, the battle for the London Stock Exchange plc renewed with fervor Thursday, Jan. 6, as both of its suitors moved frantically to cast themselves as the...

Triarc to form REIT.
January 7, 2005... Byline: Jonathan Berke Nelson Peltz's and Peter May's Triarc Cos. is forming a real estate investment trust after shelving plans for a business development company last year. The REIT, to be called Deerfield Triarc Capital Corp.,...

Luxottica buys Pearle Europe stake.
January 7, 2005... Byline: Liam Moloney in Rome Luxottica Group SpA, the world's largest eyewear maker, said Wednesday, Jan. 5, it sold its 21% stake in European optical chain Pearle Europe BV to HAL Holding NV for [Euro]144 million ($191 million),...

Harvest sells Edgen Corp.
January 7, 2005... Byline: Christine Idzelis New York-based private equity firm Harvest Partners Inc. said Thursday, Jan. 6, it has agreed to sell Edgen Corp., a Baton Rouge, La., steel parts supplier, for $124 million to crosstown PE firm Jefferies...

Movers & shakers: Jan. 7, 2005.
January 7, 2005... Byline: compiled by Matthew Wurtzel Corporate turnaround specialist AlixPartners LLC promoted five new managing directors, Eugenio Berenga in Milan, Italy, Todd Brents in Dallas, David Garfield in Chicago, Bruce Miles in New York and Lisa...

PE funds to reduce Dex stake.
January 7, 2005... Byline: Peter Moreira Private equity firms The Carlyle Group and Welsh Carson Anderson & Stowe plan to further reduce their stake in Dex Media Inc. by selling at least 12% of the stock of the phone directory publisher. Denver-based...

Cognis plans second payout.
January 7, 2005... Byline: Jonathan Braude in London German specialty chemicals company Cognis Deutschland GmbH & Co. KG is gauging investor appetite for a [Euro]500 million ($663 million) bond issue that would allow another big dividend for its private...

Granville Baird exits Nobis.
January 7, 2005... Byline: Jonathan Braude U.K. midmarket private equity firm Granville Baird Capital Partners announced the completion Thursday, Jan. 6, of a deal to sell German commercial cleaner and security business Nobis Beteiligungen GmbH to its...

Bear PE arm buys specialty packager.
January 7, 2005... Byline: Kelly Holman Bear Stearns Merchant Banking, the private equity unit of Bear, Stearns & Co., has acquired Lansing, Mich.-based specialty printing and packaging company John Henry Co. Terms of the acquisition, announced...

Celanese IPO a boon to Blackstone.
January 7, 2005... Byline: Lisa Gewirtz and David Carey New York private equity firm Blackstone Group stands to more than quintuple its original investment in Celanese Corp., when it takes the chemical company public less than a year after buying it. ...

Bally considers selling 40% stake.
January 7, 2005... Byline: Ron Orol Bally Total Fitness Holding Corp. is in talks to sell a large minority stake in the ailing health club operator amid a broader move to divest assets, sources close the situation said. Tennenbaum Capital Partners LLC,...

Alexza lands $52M.
January 7, 2005... Byline: Clifford Carlsen Alexza Molecular Delivery Corp. raised $52 million in late stage financing to foot the cost of four clinical regulatory programs in 2005, and to support development of additional products that use aerosol...

Realm Systems rings up $8.5M.
January 7, 2005... Byline: Phineas Lambert Wireless mobile device maker Realm Systems Inc. announced Thursday, Jan. 6, that it has secured $8.5 million in a preferred Series A round of venture capital led by GMG Capital Partners of New York and David...

Shareholder group rescues KomTek.
January 6, 2005... Byline: Ben Fidler An 11th hour purchase agreement has again saved KomTek Inc. from liquidation. Judge Henry Boroff at the U.S. Bankruptcy Court for the District of Massachusetts in Worcester approved a motion Monday, Jan. 3, to sell...

Intermet renegotiates contracts.
January 6, 2005... Byline: Erik Moser Intermet Corp. has successfully renegotiated supply agreements with its largest customers, removing the threat of losing its debtor-in-possession financing and putting the bankrupt automotive metal caster in a better...

Gadzook's DIP threatened.
January 6, 2005... Byline: Jonathan Berke As the post-Christmas watch continues to see what major retailer will be the first of the new year to file for bankruptcy, one already there, Gadzooks Inc., continues to sink deeper. The Carrolton, Texas-based...

Delta fare cut squeezes US Air.
January 6, 2005... Byline: Lou Whiteman US Airways Group Inc.'s floundering restructuring effort received two new blows on Wednesday, Jan. 5, as rivals Delta Air Lines Inc. unveiled a plan to slash domestic ticket prices and Southwest Airlines Co....

Multicanal bondholders file appeal.
January 6, 2005... Byline: Terry Brennan U.S. bondholders launched an appeal Wednesday, Jan. 5, of multiple bankruptcy court rulings that block them from moving against the assets of Multicanal SA. The holders of $500 million worth of the bonds that...

Deutsche gets competition for Stelco.
January 6, 2005... Byline: Laura King in Toronto Six potential buyers are considering challenging a stalking-horse bid by Deutsche Bank AG for insolvent Stelco Inc. and have moved into a second phase of due diligence. The Hamilton, Ontario-based...

Navigant Consulting sheds assets.
January 6, 2005... Byline: Claire Poole in Houston Chicago risk advisory firm Navigant Consulting Inc. said Wednesday, Jan. 5, it has agreed to sell some of its corporate finance assets to six senior advisers led by Charles Goldstein in its Baltimore and...

Grupo Folha restructures.
January 6, 2005... Byline: Mike Kepp in Rio de Janeiro Grupo Folha, owner of Brazil's No.1 newspaper has said it would merge its businesses under a new umbrella firm, a restructuring meant to lead to an initial public offer. The new company, Folha-UOL...

Ahold: Disco sale will close.
January 6, 2005... Byline: Renee Cordes in Brussels Dutch food retailer and wholesaler Royal Ahold NV on Wednesday insisted that it expects to complete the sale of its Argentine chain Disco SA to Chilean retailer Cencosud SA by April 1. But Ahold said...

U.K. threatens beer merger.
January 6, 2005... Byline: Jonathan Braude in London Britain's Competition Commission has threatened to veto the acquisition of Adolph Coors Co.'s U.K. beer and cider dispensing equipment and maintenance business by brewers Scottish & Newcastle plc and...

Chinese utility buys out investors.
January 6, 2005... Byline: Shu-Ching Jean Chen in Hong Kong Beijing-based China Huaneng Group, one of China's five national power generation groups, is buying out two foreign investors in Hebei Hanfeng Power Generation LLC for $168 million to assume full...

Gaming 2004: Big deals, hard cases.
January 6, 2005... Byline: Jonathan Berke Between MGM Mirage Inc.'s $7.9 billion acquisition of Mandalay Resort Group and Harrah's Entertainment Inc.'s $9.4 billion purchase of Caesars Entertainment Inc., the casino industry had a huge dealmaking year. ...

Danish energy merger under fire.
January 6, 2005... Byline: Patricia Koza An influential report due out next week by the Organization for Economic Cooperation and Development criticizes a proposed $5 billion merger between Denmark's two biggest energy companies and could raise new doubts...

Bristol may shed consumer division.
January 6, 2005... Byline: Tara Croft More than halfway through a five-year transformation in its product portfolio, Bristol-Myers Squibb Co.'s consumer medicines unit could be the next to go. The unit, consisting primarily of the company's Excedrin brand...

Ratings review: Jan. 6, 2005.
January 6, 2005... Byline: Gerald Magpily For Rayovac Corp., a new year brings a new addition to its product lines, but with a possible hidden cost. The Atlanta-based manufacturer of batteries, razors and lighting agreed to pay $1.2 billion for St....

Ubisoft available.
January 6, 2005... Byline: Ross Tieman in Toulouse, France, with Kate Gibson in Chicago Ubisoft Entertainment SA, a French interactive video company responsible for the popular Tom Clancy spy games, has itself become a center of intrigue. The issue: Who,...

Supervalu buys Total Logistics.
January 6, 2005... Byline: Brenon Daly Supervalu Inc. said Wednesday, Jan. 5, that it will acquire Total Logistics Inc. for $165 million in cash, plus $68 million in assumed debt, as the grocery chain looks to build up its distribution and logistics...

CIT buys Education Lending.
January 6, 2005... Byline: Peter Moreira CIT Group Inc. has moved into the high-growth, low-risk educational lending business with the $381 million purchase of San Diego-based Education Lending Group Inc., but the costs and ambitious targets associated...

Movers & shakers: Jan. 6, 2005.
January 6, 2005... Byline: Matthew Wurtzel Burrill & Co., a San Francisco-based life-science merchant bank, announced a number of promotions and organizational changes. In the merchant banking business, Richard T. Haiduck and James D. Watson were...

PE firms zero in on auctions.
January 6, 2005... Byline: George White With many predicting that 2005 will be a big year for M&A activity, private equity firms are starting off on the right foot by taking part in a number of multi-billion dollar auctions. According to the Deal's...

Morgenthaler buys auto parts maker.
January 6, 2005... Byline: Christine Idzelis Cleveland-based private equity firm Morgenthaler Partners has bought Phillips & Temro Industries, an Eden Prairie, Minn., diesel engine part supplier, in a secondary buyout from a group led by Chicago-based...

Jordan sells Permatex.
January 6, 2005... Byline: Kelly Holman The Jordan Co. announced Wednesday, Jan. 5, it has sold Hartford, Conn.-based specialty chemical company Permatex Inc. to Glenview, Ill.-based Illinois Tool Works Inc. Terms of the sale, which closed Monday, were...

KRG recaps Tensar for dividend.
January 6, 2005... Byline: Kelly Holman Denver private equity firm KRG Capital Partners has recouped its equity investment in soil-retention products maker Tensar Corp. through a $187 million recapitalization of the Atlanta company. KRG, which...

Goldman invests in XLHealth.
January 6, 2005... Byline: David Carey New York private equity firm Goldman Sachs Capital Partners and Norman Payson, the former chairman and CEO of Oxford Health Plans Inc., have teamed up to make a $63.75 million growth investment in XLHealth Corp., a...

Hedge fund slams Metromedia sale.
January 6, 2005... Byline: Vyvyan Tenorio Hedge fund Mellon HBV Alternative Strategies LLC, a unit of Pittsburgh's Mellon Financial Corp., is objecting to the $300 million sale of Metromedia International Group Inc.'s core businesses to a group of...

DexCom nets $22.5M.
January 6, 2005... Byline: Paul Bonanos Glucose monitoring system maker DexCom Inc. of San Diego will advance its product closer to market with $22.5 million in fourth-round funding. First-time backer Warburg Pincus LLC of New York led the round,...

Sprint affiliate seeks protection.
January 5, 2005... Byline: Chris Nolter The Lake Charles, La., unit of US Unwired Inc. said in December that it would file the plan of reorganization. The company's bankruptcy petition lists nearly $250 million in assets and about $415 million in debts....

Dorado creditors face long wait.
January 5, 2005... Byline: Terry Brennan Creditors of bankrupt Dorado Marine Inc. hope good things do come to those who wait- -- because they may end up waiting five years to be fully repaid. But the catch is that most of Dorado's secured creditors may...

Happy Kids can't please creditors.
January 5, 2005... Byline: David Elman Lenders to Happy Kids Inc. are definitely not happy. The New York-based designer and marketer of children's apparel, along with three subsidiaries, on Monday, Jan. 3, jointly filed for Chapter 11 in the U.S....

Adams to pay Hawaiian Air.
January 5, 2005... Byline: Greg Johnson Hawaiian Airlines Inc. said it would recoup $3.6 million from the carrier's former chief executive John W. Adams and companies affiliated with him under a lawsuit settlement. The airline's trustee, Joshua...

Trump Hotels awaits DIP ruling.
January 5, 2005... Byline: Jonathan Berke Trump Hotels & Casino Resorts Inc. will find out on January 11th if it will win final approval on its $100 million debtor-in-possession financing. Judge Judith Wizmur of the US Bankruptcy Court for the District...

Lionel wins DIP extension.
January 5, 2005... Byline: Greg Johnson Lionel LLC can use its debtor-in-possession financing until month's end. The Chesterfield, Mo.-based model train maker won a commitment for $36 million in DIP loans from PNC Bank Corp. and GE Business Capital...

IPOs eclipsed M&A in Asia.
January 5, 2005... Byline: Shu-Ching Jean Chen in Hong Kong Asian companies raised $27 billion through initial public offerings in 2004, according to data released Tuesday, Jan. 4, a 30% leap from a year earlier, when the SARS epidemic ravished the region's...

Archipelago to buy Pacific Exchange.
January 5, 2005... Byline: Peter Moreira Chicago-based electronic stock exchange Archipelago Holdings Inc. agreed Tuesday, Jan. 4, to buy the parent of the Pacific Exchange, to become the first electronic exchange that can accommodate both stock and...

Fortis to divest Assurant stake.
January 5, 2005... Byline: Renee Cordes in Brussels Dutch-Belgian financial services group Fortis said Tuesday, Jan. 4, it is planning two transactions that will sell off its remaining 35% stake in U.S. insurer Assurant Inc., which it spun off and listed on...

WMC spurns Xstrata offer.
January 5, 2005... Byline: Giles Parkinson in Sydney Australian mining group WMC Resources Ltd. on Tuesday, Jan. 4, formally rejected a A$7.4 billion ($5.8 billion) bid from Xstrata plc, releasing an independent experts' report that gave its shares a...

High oil prices fueled energy deals.
January 5, 2005... Byline: Claire Poole in Houston When oil and gas prices go up, the number of oil and gas deals should go down, given higher valuations. Right? Wrong. Dealmaking was brisk in the oil patch this past year, with several mergers,...

L&G Ventures to buy Cafe Rouge.
January 5, 2005... Byline: Jonathan Braude British mid-market private equity firm ECI Partners will serve its investors a tasty return on the sale of its restaurant chains, Cafe Rouge and Bella Italia, to Legal & General Ventures Ltd., expected by the end...

Allied Capital buys Insight Pharma.
January 5, 2005... Byline: Tara Croft Washington, D.C.-based Allied Capital Corp. said Tuesday, Jan. 4, it completed a buyout of Insight Pharmaceuticals Corp. last Friday for about $155 million, including debt. Allied Capital has also committed roughly $5...

UGS reels in Israel's Tecnomatix.
January 5, 2005... Byline: Kate Gibson UGS Corp. said Tuesday, Jan. 4, it would pay roughly $228 million to buy Tecnomatix Technologies Ltd., an Israeli provider of manufacturing software. The acquisition by UGS, which makes products to help users...

Movers & shakers: Jan. 5, 2005.
January 5, 2005... Byline: compiled by Matthew Wurtzel Merrill Lynch & Co. hired Scott Kisting as co-head of its global bank group. Kisting joins John Qua as head of the group, which manages private client and institutional banking operations. Kisting,...

Cesky privatization draws interest.
January 5, 2005... Byline: Brian Cattell in London The Czech government said Tuesday, Jan. 4, that nine private equity and telecommunications firms have received information memorandums for the forthcoming privatization of national phone operator Cesky...

Willis Stein to buy Education Corp.
January 5, 2005... Byline: Kelly Holman Willis Stein & Partners announced Tuesday, Jan. 4, it has recapitalized Education Corp. of America, acquiring a majority stake in the Birmingham, Ala.-based operator of post-secondary educational institution Virginia...

Private Capital People: Jan. 4, 2004.
January 5, 2005... Byline: compiled by Baz Hiralal Jo Taylor will succeed Rod Perry, upon his retirement, as head of 3i Group plc's venture capital business. Perry, 59, who will formally retire from the 3i Group board at the 2005 annual general meeting,...

Buyout firms pursue Amadeus.
January 5, 2005... Byline: Andrew Bulkeley in Berlin Four private equity firms remain in the running in the [Euro]4.2 billion ($5.7 billion) auction of Spanish travel reservations group Amadeus Global Travel Distribution SA, sources said Tuesday, Jan. 4....

TA Associates gets stake in Lumber.
January 5, 2005... Byline: Kelly Holman Boston private equity firm TA Associates has acquired a minority stake in hardwood flooring retailer Lumber Liquidators Inc. TA, which announced the deal Tuesday, Jan. 3, invested $35 million from its $2 billion...

Thayer buying Qualitor.
January 5, 2005... Byline: Christine Idzelis Thayer Capital Partners has led a secondary buyout of Qualitor Inc., a Southfield, Mich., automotive after-market parts manufacturer, from Wind Point Partners for an undisclosed amount. Thayer is the majority...

Austin Ventures eyes first PE fund.
January 5, 2005... Byline: Stacey Higginbotham in Austin Texas venture capital firm Austin Ventures LP is considering the launch of a separate private equity fund, a first for the 25-year-old firm, looking to raise much as $800 million alongside a new...

Rayovac to buy United Industries.
January 5, 2005... Byline: David Carey and Lisa Gewirtz Atlanta-based battery maker Rayovac Corp. said Tuesday, Jan. 4, it would acquire United Industries Corp., which makes everything from insect spray to pet foods, for about $1.2 billion in stock, cash...

Oaktree buys HydroChem.
January 5, 2005... Byline: Kelly Holman Los Angeles private equity firm Oaktree Capital Management LLC has purchased HydroChem Holding Inc., a Deer Park, Texas, industrial cleaning services company, in a secondary buyout from Houston private equity firm...

PE firmstake William Pitt stake.
January 5, 2005... Byline: Christine Idzelis San Francisco private equity firms Weston Presidio and Dorset Capital Management LLC have purchased a minority stake in William Pitt Inc., parent of Robbins Bros., which bills itself as the "World's Biggest...

Nereus lands $43M round.
January 5, 2005... Byline: Paul Bonanos A large, international investor syndicate has backed drug developer Nereus Pharmaceuticals Inc. of San Diego for the fourth time, providing the first portion of a $42.6 million round of funding intended to boost the...

Vitae gets $34M, new name.
January 5, 2005... Byline: Clifford Carlsen Three-year-old Concurrent Pharmaceuticals breathed new life into its fledgling drug discovery business with a name change to Vitae Pharmaceuticals Inc. and $34 million in new venture capital. Fort Washington,...

Scotty's seeks liquidation.
January 4, 2005... Byline: Paul Burton The Winter Haven, Fla.-based company filed for Chapter 11 protection on Sept. 10. Scotty's, which has 40 stores and outlet malls that employ about 470, could not come up with enough financing to stay in business,...

VoiceIQ wins court okay.
January 4, 2005... Byline: Laura King in Toronto Canadian software developer VoiceIQ Inc. has won court and shareholder approval to restructure under the Companies' Creditors Arrangement Act. Under the restructuring plan, the Calgary, Alberta-based...

Insilco trustee takes aim at DLJ.
January 4, 2005... Byline: Terry Brennan DLJ Merchant Banking Partners is being sued by the liquidating trustee for Insilco Technologies Inc., who alleges the private equity firm engaged in insider dealings that helped trigger the company's collapse. ...

NextWave faces more obstacles.
January 4, 2005... Byline: Chris Nolter When NextWave Telecom Inc. puts its disclosure statement before a bankruptcy judge later this first week of January, the company will be facing a group of hard-to-please investors. NextWave filed for Chapter 11...

US Air suffers holiday blues.
January 4, 2005... Byline: Lou Whiteman The self-described "operational meltdown" experienced by US Airways Group Inc. over the Christmas holiday could prove to be the beginning of the end for the troubled carrier, which is struggling to emerge from...

Halliburton subs emerge from Ch. 11.
January 4, 2005... Byline: Claire Poole in Houston At least one chapter closed on the Halliburton Co. saga on Monday, Jan. 3, with the Houston oil services provider announcing its units Kellogg Brown & Root and DII Industries had successfully emerged from...

Aloha filing could spur merger talk.
January 4, 2005... Byline: Lou Whiteman One of the worst years financially in aviation history ended on a dour note when Aloha Airgroup Inc. landed in bankruptcy court, another victim of high fuel costs and cut-throat competition. The filing, which...