The Daily Deal articles from July 2003

The Daily Deal archives from July 2003

Lufthansa eyes Swiss investment.
July 1, 2003... Byline: Andrew Bulkeley in Berlin A breeze out of Germany may be the best and last chance for the air carrier formerly known as Swissair to get some wind under its wings. With speculation rampant that Deutsche Lufthansa AG is interested...

Air Canada's pilots OK contract.
July 1, 2003... Byline: Laura King in Toronto Air Canada's pilots have ratified a cost-cutting agreement that eliminates 317 jobs, cuts salaries and saves the airline $250 million a year. As expected, most of the 3,300 members of the Air Canada Pilots...

XO claims $495M in Global Crossing debt.
July 1, 2003... Byline: Chris Nolter XO Communications Inc. announced the preliminary results of its tender offer for Global Crossing Ltd.'s bank debt on Monday, June 30, reporting that $495 million was tendered. The company already held $300 million of...

Callaway to buy golf-ball giant.
July 1, 2003... Byline: David Ehrlich Top-Flite Golf Co., which calls itself the world's No. 1 maker of golf balls, said Monday it plans to file for bankruptcy as part of a deal to sell most of its golf-related assets to Carlsbad, Calif.-based Callaway...

Crown Pacific seeks protection.
July 1, 2003... Byline: Claire Poole Portland, Ore., forestry company Crown Pacific Partners LP said Monday, June 30, it filed for Chapter 11 in U.S. Bankruptcy Court for the District of Arizona in Phoenix. Crown Pacific asked the court to approve $40...

Supervalue is now eyeing Fleming assets.
July 1, 2003... Byline: Greg Johnson Grocery distributor Supervalu Inc. is looking to bag some of the assets of rival Fleming Cos. The Minneapolis company said on Monday, June 30 that it may be interested in buying parts of bankrupt Fleming. "We...

Peregrine reaches partial SEC settlement.
July 1, 2003... Byline: Cheryl Meyer in Los Angeles Bankrupt application software company Peregrine Systems Inc. of San Diego said late Monday it has reached a partial settlement with the U.S. Securities and Exchange Commission, agreeing to retain an...

GenTek files reorg plan.
July 1, 2003... Byline: Terry Brennan Telecom supplier GenTek Inc. said Monday, June 30, it has filed a reorganization plan that would swap $756 million in secured debt for ownership of the new company. The senior lenders would receive a 92.4% stake...

Judge denies bondholders right to file plan for NRG unit.
July 1, 2003... Byline: Soma Biswas A U.S. bankruptcy court judge Monday, June 30, denied bondholders the right to assume NRG Energy Inc.'s exclusive right to file a reorganization plan for a profitable subsidiary called South Central Generating llc. ...

Kmart seeks supplier payback.
July 1, 2003... Byline: Soma Biswas To comply with a federal court ruling, Kmart Corp. has asked one of its suppliers, Handleman Co., to give back a $49 million "critical vendor" payment the retailer made to it during its bankruptcy proceedings. ...

Mosaic Group sale to JLL slated to clear.
July 1, 2003... Byline: Laura King Bankruptcy courts in Canada and the U.S. are expected to approve on Wednesday, July 2, the C$105 million ($77.9 million) sale of Mosaic Group Inc.'s sales solutions business to New York private investment company JLL...

Deltagen's fears come true.
July 1, 2003... Byline: Greg Johnson Two weeks after warning it would do so, drug developer Deltagen Inc. filed for bankruptcy. The Redwood City, Calif., biotech company blamed its June 27 filing on an inability to obtain new financing so it could pay...

Enron ties to 4 banks studied.
July 1, 2003... Byline: Terry Brennan Enron Corp.'s examiner filed a report Monday, June 30, outlining a relationship with four of its banks as the battered energy trader sought more time to iron out a deal with creditors. Creditors are reportedly...

CEO Shuffle: June 30, 2003.
July 1, 2003... Byline: David Ehrlich Prefab homebuilder Champion Enterprises Inc. has brought in a turnaround specialist after reporting six consecutive quarterly losses. Auburn Hills, Mich.-based Champion on Monday named Al Koch, the former interim CFO...

NEC spinoff readies $1.3B IPO.
July 1, 2003... Byline: Charles Smith in Tokyo Japanese semiconductor manufacturer NEC Electronics Corp. said Monday, June 30, it had set a tentative price range of [yen]3,600 to [yen]4,200 for what could be the largest initial public offering in Japan...

Yell may announce IPO.
July 1, 2003... Byline: Nicola Hobday in London After a prolonged drought, a steady drip of European initial public offerings appears to be starting, with directories business Yell Group plc widely expected to announce Tuesday that it has revived flotation...

Axis, Molina IPOs on deck.
July 1, 2003... Byline: Donna Block The second doubleheader in two weeks gives observers of initial public offerings hope that solid interest in upcoming new issues will revitalize that market. This week, Axis Capital Holdings Ltd., a Bermuda-based...

Israel opts for Bank Leumi public offer.
July 1, 2003... Byline: Neal Sandler in Tel Aviv Israeli Finance Minister Benjamin Netanyahu decided Monday, june 30, to speed up the sale of the government's remaining 41% stake in Bank Leumi, the country's second-largest commercial bank, via the local...

Alive and well.
July 1, 2003... Byline: Paul K. Rowe The Delaware Court of Chancery's recent decision in the Walt Disney Co. derivative litigation case has provoked comment both because it reaches the opposite result from earlier decisions in the litigation -- the court...

Genesis deal to face antitrust scrutiny.
July 1, 2003... Byline: Jaret Seiberg in Washington Genesis Microchip Inc.'s $446 million acquisition of Pixelworks Inc. could be in for a rough ride after the Federal Trade Commission decided last week to expand its antitrust investigation into the...

Aeroflex signs deal to buy MCE Tech.
July 1, 2003... Byline: The Deal Looking to expand its millimeter wave device offerings, Plainville, N.Y., microelectronics maker Aeroflex Inc. has reached a deal to acquire MCE Technologies Inc. in a transaction valued at $67.8 million. Under the terms,...

Crown Pacific files Chapter 11 petition.
July 1, 2003... Byline: The Deal Ailing Atlanta power producer Mirant Corp. said Monday that 66.67% of its bondholders support its debt exchange offer that will restructure $5.3 billion of debt and keep it out of bankruptcy. Mirant needs 85% approval for...

Impala Platinum buying out Zimplats.
July 1, 2003... Byline: The Deal South African miner Impala Platinum Holdings Ltd. said Monday it plans to buy out minority shareholders in Australian-listed Zimbabwe Platinum Mines Ltd., or Zimplats, for A$4.08 per share in cash, or up to R972 million...

J.D. Edwards holders sue to block deal.
July 1, 2003... Byline: The Deal J.D. Edwards & Co. shareholders are further complicating the already complex merger fight between Oracle Corp. and PeopleSoft Inc. In a suit seeking class-action status filed in the Delaware Court of Chancery, the...

Mosaic Group sale to JLL slated to clear.
July 1, 2003... Byline: The Deal Bankruptcy courts in Canada and the U.S. are expected to approve on Wednesday the C$105 million ($77.9 million) sale of Mosaic Group Inc.'s sales solutions business to New York private investment company JLL Partners. Hap...

Norway selling 13.9% chunk of Telenor.
July 1, 2003... Byline: The Deal Norway said Monday it will sell up to 13.9% of national telecom Telenor ASA in a transaction that could raise more than $1 billion and reduce the state's stake in the company to 63.7%. Lehman Brothers Inc. was named to...

Paragon Group getting Britannic Money.
July 1, 2003... Byline: The Deal London mortgage lender Paragon Group of Cos. plc agreed on Monday to buy Britannic Money, the mortgage unit of insurer Britannic Group plc, for [pounds sterling]18.7 million ($30.8 million) in cash. The purchase price is a...

SCM Micro shedding digital media assets.
July 1, 2003... Byline: The Deal SCM Microsystems Inc., a Fremont, Calif., designer of computer security and digital media technology, said Monday that it would sell its digital video business to Mountain View, Calif., video technology supplier Pinnacle...

Teledyne Technologies grabs Spirent unit.
July 1, 2003... Byline: The Deal Los Angeles aerospace company Teledyne Technologies Inc. said Monday it has acquired the aviation IT division of Spirent plc for $6.85 million in cash. The unit, Aviation Information Solutions, produces flight deck and...

Elco to buy China appliances maker.
July 1, 2003... Byline: Neal Sandler in Tel Aviv Continuing a foreign expansion push, Israel's Elco Holdings is planning to buy a majority stake in a Chinese appliances joint venture from Newton, Iowa-based Maytag Corp. and China's Hefei Rongshida Group....

IGT hits jackpot in Acres deal.
July 1, 2003... Byline: Cheryl Meyer in Los Angeles International Game Technology said Monday, June 30, it is buying Acres Gaming Inc., which makes customer-tracking software, for $130 million in cash. IGT, a Reno, Nev.-based developer of slot-machine...

Cablevision, MGM change channels.
July 1, 2003... Byline: Peter Lauria With Metro-Goldwyn-Mayer Inc. and Cablevision Systems Corp. chasing Vivendi Universal SA's entertainment assets, Monday's $500 million deal between the film studio and cable operator not only strengthens both their...

MGM selling Rainbow networks stake.
July 1, 2003... Byline: Josh Karlen Metro-Goldwyn-Mayer Inc. is selling its minority stake in three cable networks owned by Rainbow Media Holdings back to the company, a unit of Cablevision Systems Corp., for $500 million. Under the terms of the...

Hamleys pulls support for Baugur bid.
July 1, 2003... Byline: Laura Board in London British toy retailer Hamleys plc withdrew its backing Monday for a [pounds sterling]52.2 million ($86.1 million) offer from Iceland's Baugur after U.K. retail entrepreneur Tim Waterstone trumped the original...

Israel's Elco to buy Maytag venture.
July 1, 2003... Byline: Neal Sandler in Tel Aviv Continuing a foreign expansion push, Israel's Elco Holdings Ltd. plans to buy a majority stake in China's third-largest washing machine maker from its joint venture owners, Maytag Corp. of the U.S. and...

SABMiller extends push into China.
July 1, 2003... Byline: Shu-Ching Jean Chen in Hong Kong Mixing partners in China's highly competitive beer market, SABMiller plc unveiled its second investment in China on Monday, June 30, announcing a HK$675 million ($87 million) deal for a key minority...

Swallowing the Pill: June 30, 2003.
July 1, 2003... Byline: Gerald C. Magpily To defend against hostile takeovers, some companies have enacted , or poison pills. Developed in the 1980s, shareholder rights plans are the strategy of choice for publicly traded companies. Poison-pill...

Ashland unit sold for $300M.
July 1, 2003... Byline: Claire Poole Lehigh Valley, Pa., industrial gases maker Air Products & Chemicals Inc. said Monday, June 30, it agreed to acquire the electronic chemicals business and certain related units of Covington, Ky., chemicals firm Ashland...

Dean Foods goes organic in $216M deal.
July 1, 2003... Byline: Tara Croft In a move to gain more ground in the alternative milk market, Dean Foods Co., the country's biggest dairy, agreed Monday, June 30, to buy the 87% it did not already own of Horizon Organic Holding Corp., the U.S.'s...

Movers & Shakers: July 1, 2003.
July 1, 2003... Byline: Heidi Moore The finance world is all topsy-turvy these days. Media organizations are starting equity research shops (see TheStreet.com and Reuters Group plc) -- and now a think tank is starting an investment bank. Los...

Asian airline lands PE backers.
July 1, 2003... Byline: Shu-Ching Jean Chen Private equity firms from three continents teamed up Monday, June 30, to invest $26 million in Malaysia's second-largest airline, Air Asia Sdn Bhd, for a combined 26% stake, valuing the company at $100 million....

Cerberus cuts $845M Aozora deal.
July 1, 2003... Byline: Charles Smith in Tokyo Japan's Softbank Corp. agreed Monday to sell its 48.8% stake in Aozora Bank to U.S. private equity fund Cerberus NCB Acquisition LP for [yen]101.11 billion ($845.4 million). The sale, however, will...

Rival bidders approach Debenhams.
July 1, 2003... Byline: Jonathan Braude in London Private equity houses CVC Capital Partners and Texas Pacific Group have begun due diligence on Debenhams plc as they prepare to make a joint bid for the British department store chain. Rival London buyout...

Colaninno still ahead for Piaggio recap.
July 1, 2003... Byline: Vyvyan Tenorio Despite a last-ditch effort by New York vulture fund Cerberus Capital Management LP to trump the deal, the holding company of Italian financier Roberto Colaninno has extended its exclusive talks to buy a stake in...

PE-backed Accentia buys Biovest.
July 1, 2003... Byline: Kelly Holman Accentia Inc., a specialty pharmaceuticals developer and portfolio holding of St. Louis private equity firm Hopkins Capital Group LLC, said Monday, June 30, it has acquired a majority stake in Minneapolis biotechnology...

KPS gets Wire Rope for $55M.
July 1, 2003... Byline: Kelly Holman Turnaround investors KPS Special Situations Funds plan to announce Tuesday, July 1, that they have completed the acquisition of the assets of St. Joseph, Mo.-based Wire Rope Corp. of America Inc. out of bankruptcy for...

DOJ extends Oracle-PeopleSoft probe.
July 1, 2003... Byline: Jaret Seiberg in Washington Oracle Corp. said Monday, June 30, that the Department of Justice has expanded its antitrust investigation into the company's unsolicited bid for PeopleSoft Inc., issuing a so-called second-request for...

Carlyle, Atlas pour $7M more into Orthogon.
July 1, 2003... Byline: Clifford Carlsen U.K.-based Orthogon Systems has tapped existing investors The Carlyle Group and Atlas Ventures for $7 million in third-round venture capital as it begins selling equipment for wireless broadband networks aimed...

InPhonic raises $56M in round.
July 1, 2003... Byline: Tyson Freeman InPhonic Inc., an acquisitive player in the crowded wireless sector, said Monday, June 30, that it had raised a $56 million fourth round of venture capital funding from a single investor, Technology Crossover Ventures...

Idealab scores court victory.
July 1, 2003... Byline: Cheryl Meyer in Los Angeles A California judge has thrown out most of the plaintiffs' claims in a one-year-old lawsuit against Idealab Inc., frustrating a group of disgruntled investors who sought to shut down the technology...

NRG's plant sale in limbo.
July 2, 2003... Byline: Soma Biswas Now that a New York judge has denied bondholders the right to take over bankrupt NRG Energy Inc.'s exclusive right to file a reorganization plan for its profitable South Central Generating LLC subsidiary, a deal worth...

Nextel wins WorldCom auction.
July 2, 2003... Byline: Chris Nolter While Nextel Communications Inc.'s emergence as the winning bidder in the auction for WorldCom Inc.'s fixed wireless assets took some industry observers off guard, the move isn't completely out of character for the...

Sale of Troll unit speeds liquidation.
July 2, 2003... Byline: Terry Brennan Two private equity firms stand to lose all of their investment in Troll Communications LLC as the company moves toward liquidation after selling its textbook division to Scholastic Corp. for $7.76 million. Quad...

American HomePatient revived.
July 2, 2003... Byline: Soma Biswas American HomePatient Inc., one of the largest home healthcare providers in the country, emerged from bankruptcy Tuesday after nearly a year in Chapter 11. The Brentwood, Tenn.-based company's bankruptcy was unusual...

Setback for Global Crossing challengers.
July 2, 2003... Byline: Chris Nolter In a setback to parties looking to thwart Global Crossing Ltd.'s sale agreement, U.S. Bankruptcy Judge Robert Gerber approved the debtor's request to amend its deal with Singapore Technologies Telemedia Pte. Ltd. and...

Headway slumps into bankruptcy.
July 2, 2003... Byline: Greg Johnson Job seekers are not the only ones scrambling in this tough economy. Companies trying to find them work are having difficulties, too. Headway Corporate Resources Inc., a New York human resources and staffing...

Onex boosts planned Magellan investment.
July 2, 2003... Byline: Terry Brennan Onex Corp. has revised its investment plans in bankrupt Magellan Health Services Inc. after a rival investor stepped forward, Magellan said. Toronto-based Onex hiked its equity evaluation of Magellan to $285...

Fattened bid for Formica approved.
July 2, 2003... Byline: Jonathan Berke A New York judge Tuesday approved a sweetened $427 million offer for bankrupt Formica Corp. from two of its bondholders, meaning the countertop company can skip an auction and prevent its ex-chairman from submitting...

Hot debut for Bermuda reinsurer.
July 2, 2003... Byline: Donna Block Shares of AXIS Capital Holdings Ltd. hit a home run in their debut Tuesday as the Bermuda-based reinsurer opened for trading 13.7% above its initial public offering price. Strong investor demand prompted the...

Yell IPO returns at lower price.
July 2, 2003... Byline: Nicola Hobday in London Directories company Yell Group plc said Tuesday, July 1, that it is reviving plans to raise [pounds sterling]850 million ($1.4 billion) in an initial public offering. The offering price is about 9% less...

PetroCorp acquired for $190M.
July 2, 2003... Byline: Claire Poole Tulsa, Okla., oil explorer Unit Corp. said Tuesday, July 1, it signed a letter of intent to acquire crosstown rival PetroCorp Inc. for $190 million in cash and stock. The deal includes 2 million Unit shares, which...

Transatlantic hotel deal nets $185M.
July 2, 2003... Byline: Brian Cattell in London In a complex deal replete with mutual fee guarantees, Britain's Intercontinental Hotels Group plc sold 16 of its U.S. hotels to Hospitality Properties Trust on Tuesday, July 1, for $185 million in cash. ...

HSR Early Terms: July 1, 2003.
July 2, 2003... Byline: Jaret Seiberg The Federal Trade Commission said Tuesday, July 1 that the antitrust agencies do not have objections to a deal involving United Technologies Inc. and Chubb plc. Also receiving early termination notices under the...

Tulsa oil explorers plan merger.
July 2, 2003... Byline: Claire Poole The Tulsa, Okla., oil explorer Unit Corp. said Tuesday, July 1, it had signed a letter of intent to acquire a crosstown rival, PetroCorp Inc., for $190 million in cash and stock. The deal would include 2 million...

Citigroup deal in Shanghai delayed.
July 2, 2003... Byline: Shu-Ching Jean Chen in Hong Kong Citing bureaucratic delays and the impact of the deadly SARS virus, Shanghai Pudong Development Bank Co. Ltd. said its landmark investment agreement with New York banking giant Citigroup Inc. won't...

Goldman shines in European M&A.
July 2, 2003... Byline: Peter Moreira in London Mergers and acquisitions activity in Europe appears to have stabilized in the first half of 2003, and the main beneficiary was Goldman, Sachs & Co., whose business soared 40% in the period. Data from...

Loral settles Alcatel suit.
July 2, 2003... Byline: Lou Whiteman in Atlanta Loral Space & Communications Ltd. has agreed to end a turbulent four-year-old partnership with France's Alcatel SA, a deal that will allow the New York satellite manufacturer to collect on a $55 million...

Oracle reaches out to PeopleSoft clients.
July 2, 2003... Byline: Cheryl Meyer in Los Angeles Oracle Corp. said Monday, June 30, it will begin an "intensive outreach campaign" to reassure PeopleSoft Inc.'s customers of continued product support and enhancements for the next several years. ...

PeopleSoft fires at Oracle again.
July 2, 2003... Byline: Cheryl Meyer in Los Angeles PeopleSoft Inc.'s board of directors is again urging shareholders to reject a hostile $6.3 billion bid from Oracle Corp. "We believe the tender offer Oracle has made poses extraordinary risks and is...

Pfizer may sell Pharmacia unit.
July 2, 2003... Byline: Andrew Morse Drug giant Pfizer Inc. said Tuesday, July 1, it was considering a sale of the diagnostics unit it acquired in its $57 billion merger with Pharmacia Corp. earlier this year, a tactic it has taken with other noncore...

CornerStone auction heats up.
July 2, 2003... Byline: Josh Kosman and Claire Poole So, who would buy a company that has not reported audited financials for more than a year? Several financial and distressed buyers, and some strategics, are now considering the idea as they enter...

Two California malls sold.
July 2, 2003... Byline: Josh Karlen Mills Corp., a real estate investment trust based in Arlington, Va., has acquired the Del Amo Fashion Center in Torrance, Calif., one of the largest malls in the U.S., for $442 million. Announcing the deal Tuesday,...

Investors slam Millennium.
July 2, 2003... Byline: Andrew Morse Investors punished Millennium Pharmaceuticals Inc. on Tuesday, July 1, despite the company's signing of a marketing pact with Johnson & Johnson potentially worth about $750 million plus royalties for its recently...

Davis misses the cut at Vivendi.
July 2, 2003... Byline: Peter Lauria The first entrant into the auction for Vivendi Universal SA's entertainment assets is also the first to exit the race, as two sources close to the process said the Paris-based company's board decided Tuesday to bar oil...

VF tops list of Nautica stalkers.
July 2, 2003... Byline: Ron Orol in Washington VF Corp., the maker of Lee and Wrangler jeans, has emerged as a leading candidate to buy men's apparel manufacturer Nautica Enterprises Inc., industry and banking sources said. VF Corp. has publicly...

Natural Resource to buy coal reserves.
July 2, 2003... Byline: Claire Poole Houston coal company Natural Resource Partners LP said Tuesday, July 1, it agreed to acquire 78 million tons of coal reserves from units of PinnOak Resources LLC for $58 million. PinnOak is owned by Benjamin M....

Oracle delays hearing on PeopleSoft suit.
July 2, 2003... Byline: Cheryl Meyer in Los Angeles Software giant Oracle Corp. of Redwood Shores, Calif., said late Tuesday, July 1, that it and other parties involved in the lawsuit against PeopleSoft Inc. have agreed to postpone indefinitely the hearing...

Movers & Shakers: July 2, 2003.
July 2, 2003... Byline: Lisa Gewirtz The temptation to lay low the week before a holiday weekend is always great, but Bingham McCutchen has done no such thing. It announced a merger with Riordan & McKinzie, a Southern California-based law firm...

Private Capital People: July 1, 2003.
July 2, 2003... Byline: Heidi Moore and Lisa Gewirtz Movers & Shakers: July 1, 2003...

Hanaro Telecom buyers face challenge.
July 2, 2003... Byline: Roger du Mars in Seoul The proposed takeover of Hanaro Telecom Inc., South Korea's second-largest Internet services provider, for $1.2 billion by a consortium led by American International Group Inc. and Newbridge Capital Inc. was...

3i slips into Gant stake.
July 2, 2003... Byline: Jonathan Braude in London London private equity firm 3i Group plc announced Tuesday, July 1, it has bought a 20.6% stake in up-market clothing and accessories brand business Gant Co. AB, joining existing shareholder L. Capital and...

Carousel, Halifax get Meineke.
July 2, 2003... Byline: Kelly Holman Carousel Capital and the Halifax Group said Tuesday, July 1, that they agreed to acquire Charlotte, N.C.-based Meineke Car Care Centers Inc. from Sydney-based Brambles Industries Ltd. in a deal valued at $68.5 million....

Top-Flite filing clubs Oaktree.
July 2, 2003... Byline: David Carey Top-Flite Golf Co. has given a second buyout firm a lethal case of the yips. It looks like Oaktree Capital Management LLC, which just 14 months ago won control of Spalding Holdings Corp., as the company was then...

Tech Lawsuit Tracker : July 2, 2003.
July 2, 2003... Byline: Paul Bonanaos Two of the nation's largest wireless phone carriers prepared to face off in an unusual corporate espionage suit, as Verizon Wireless leveled allegations that Nextel Communications Inc. obtained two of its mobile phone...