The Daily Deal articles from May 2003

The Daily Deal archives from May 2003

Locking up lock-ups.
May 1, 2003... Byline: Terry Brennan Puerto Rican supermarket and video rental chain Nutritional Sourcing Corp. had planned to file a lock-up agreement as part of the pre-packaged Chapter 11 petition it was preparing for the U.S. Bankruptcy Court for the...

Letter from Delaware.
May 1, 2003... Byline: Shanon D. Murray with staff reports After nearly three years, parties involved in Coram Healthcare Corp.'s bankruptcy are still training their guns on each other. The latest salvo is from the equity security holders committee,...

DIP dimensions: Air Canada -- Part II.
May 1, 2003... Byline: Jonathan Berke Air Canada can play multiple choice with its $700 million debtor-in-possession loan. Unlike some bankruptcies, Air Canada will probably have to use the DIP funds it's getting from GE Capital Corp., making the...

Hutchison abandons Global Crossing.
May 1, 2003... Byline: Chris Nolter in New York and Ron Orol in Washington Global Crossing Ltd.'s Chapter 11 odyssey took yet another twist Wednesday as Singapore Technologies Telemedia Pte. announced it would take over the obligations of Hutchison...

MBNA bids for Air Canada's Aerogold.
May 1, 2003... Byline: Laura King in Toronto A surprise bid from credit card giant MBNA Corp. for Air Canada's Aerogold frequent flier business is being considered by the insolvent airline's court appointed monitor. Few details of the offer from...

Scotiabank to boost stake in Mexican lender.
May 1, 2003... Byline: Laura King in Toronto Canada's Bank of Nova Scotia is paying C$465 million ($323 million) for the Mexican government's stake in Grupo Financiero Scotiabank Inverlat, increasing its interest to 91%. The Toronto-based bank said...

Sunoco to buy N.J. refinery.
May 1, 2003... Byline: Claire Poole in Houston Philadelphia oil refiner and marketer Sunoco Inc. said Wednesday, April 30, it signed a preliminary agreement to acquire a New Jersey refinery and related pipeline assets from ailing Houston energy firm El...

Gas Natural bid faces threat.
May 1, 2003... Byline: Danny Fortson in Seville, Spain Gas Natural SDG SA's hostile [Euro]15.3 billion ($16.8 billion) bid for electric utility Iberdrola SA was dealt a strong blow Wednesday, April 30, after Spain's energy watchdog recommended it be...

AES losing big Brazil asset.
May 1, 2003... Byline: Michael Kepp in Rio de Janeiro AES Corp. stood to lose control of its crown jewel in Brazil on Wednesday, April 30, after the government moved to auction its stake in Eletropaulo, the nation's second-biggest electricity distributor....

Tomkins bids for Stackpole.
May 1, 2003... Byline: Nicola Hobday in London U.K. engineering company Tomkins plc on Wednesday, April 30, made a friendly, C$331 million ($230 million) cash bid for Toronto-based Stackpole Ltd., boosting its presence in the global automobile components...

McDonald's brings in sales help.
May 1, 2003... Byline: Josh Kosman McDonald's Corp. has called in Morgan Stanley for help in selling its so-called Partner Brands restaurant chains after its own sale efforts failed, sources said. The world's largest restaurant company has spent the...

Hawaiian bank gains support for $285M bid.
May 1, 2003... Byline: Paul Bonanos Honolulu-based Central Pacific Financial Corp., which is locked in a takeover struggle with crosstown rival CB Bancshares Inc., said late Wednesday that a second large shareholder has agreed to support its unsolicited...

BankWest buys drug lending portfolio.
May 1, 2003... Byline: Josey Puliyenthuruthel Bank of Western Australia Ltd. will pay A$306 million ($191 million) to acquire the pharmaceutical and healthcare lending business of API Finance Ltd. as part of a business alliance. API Finance, the...

Deals Deferred: April 30, 2003.
May 1, 2003... Byline: compiled by Gerald C. Magpily Gas Natural SDG SA's pursuit of competitor Iberdrola SA hit a major roadblock Wednesday as Spanish regulators moved to block the energy giant's hostile takeover attempt. Spain's energy regulator,...

Luxottica to buy Aussie eyewear retailer.
May 1, 2003... Byline: Josey Puliyenthuruthel Italy's Luxottica Group SpA, the maker of eyewear brands Ray-Ban and Versace, agreed to buy Australia's leading optical retailer, OPSM Group Ltd., for A$550 million ($341 million) in cash to round out its...

Planeta buys piece of Antena 3.
May 1, 2003... Byline: Danny Fortson in Seville, Spain Spanish publishing and media group Grupo Planeta SA announced Wednesday, April 30, that it has agreed to buy a 25.1% stake of Telefonica SA's private television operator, Antena 3 de Televisiones SA....

Gerling weighs sale of credit insurance unit.
May 1, 2003... Byline: Jonathan Braude Troubled German financial conglomerate Gerling Group seems to have found a way to solve at least some of its woes. Zurich's Swiss Reinsurance Co., Deutsche Bank AG and smaller investors, including Cologne-based...

Deutsche Bank sells cable business.
May 1, 2003... Byline: Brian Cattell in London In a further sign that Europe's battered cable industry is coming back to life, London-based private equity firm BC Partners agreed Wednesday, April 30, to buy German cable company Tele Columbus Group GmbH...

GE nearing Guaranty sale.
May 1, 2003... Byline: Lou Whiteman in Atlanta Jeffrey Immelt's stuttering plan to remake General Electric Co. might finally be picking up steam. Stung by numerous setbacks in its efforts to shed slower-growth and higher-risk units, the Fairfield,...

Thousand Trails to go private.
May 1, 2003... Byline: Kelly Holman Publicly traded campground operator Thousand Trails Inc. (http://www.1000trails.com/press_releases.html) said Wednesday, April 30, that it has agreed to be acquired by Palo Alto, Calif., private equity firm Kohlberg &...

Rigel ropes $46M in PIPE.
May 1, 2003... Byline: Katherine Goncharoff Confident that Rigel Pharmaceuticals Inc. -- a publicly held drug-discovery concern whose shares have been flagging -- is on the right path for completion of clinical tests of three of its products, a syndicate...

Revenue VCs buzzword at fair.
May 1, 2003... Byline: Katherine Goncharoff Revenue, revenue, revenue. That was the mantra among venture capitalists this year at the Crossroads Venture Fair, an annual, two-day event held in New Haven, Conn., a short distance from Yale University. ...

Vast Systems raises $6M.
May 1, 2003... Byline: Clifford Carlsen Vast Systems Technology Corp. raised $6 million in a third round led by new investor Mohr, Davidow Ventures to advance sales and marketing of software tools for embedded systems technology. The round is the...

CalPERS spills the beans on Grove Street.
May 1, 2003... Byline: Vyvyan Tenorio The California Public Employees' Retirement System released new performance data Wednesday, April 30, on the California Emerging Ventures' fund-of-funds managed by Wellesley, Mass.-based Grove Street Advisors. Grove...

Allegiance Telecom catches creditor break.
May 1, 2003... Allegiance Telecom Inc.'s lenders have agreed not to accelerate their loans or exercise other rights until May 15, as the Dallas phone company works to recapitalize its balance sheet. Allegiance, which owes the group of creditors $471 million,...

Carlyle Group to buy UIS for $800M.
May 1, 2003... Washington private equity firm The Carlyle Group said Thursday it has signed a definitive agreement to acquire UIS Inc. for about $800 million. Lehman Brothers Inc. and J.P. Morgan Chase & Co. will provide debt financing for the LBO, which is...

Click Commerce rejects Insight Venture.
May 1, 2003... Chicago e-commerce software provider Click Commerce Inc. said Thursday it has stopped considering a buyout offer from by Insight Venture Management LLC. On April 9, New York-based Insight Venture Management, which holds 19.6% of the outstanding...

Differing DHL Airways timetables offered.
May 1, 2003... Unable to agree on how long the proceeding over the legality of DHL Airways Inc.'s ownership structure should be extended, the express carrier and its rivals proposed starkly different timetables to Administrative Law Judge Ronnie Yoder in...

KKR unloads one-third of Willis Group.
May 1, 2003... Kohlberg Kravis Roberts & Co. sold about one-third of its stake Willis Group Holdings Ltd. for upwards of $600 million, Willis, a London-based insurance broker, said late Wednesday. The New York LBO shop, which bought Willis in 1998 and took it...

PE firms carve up remains of divine.
May 2, 2003... Byline: David Shabelman in San Francisco Private equity firms Golden Gate Capital and Saratoga Capital Partners emerged from divine inc.'s bankruptcy auction Thursday, May 1, with the bulk of the software company's assets, according to...

BANKRUPTCY LAWYERS' FEES: Debtor attorneys' fees only.
May 2, 2003... www.TheDeal.com

Air Canada unit goes on the block.
May 2, 2003... Byline: Laura King in Toronto A bankruptcy judge agreed Thursday, May 1, to open up the bidding for Air Canada's frequent flier credit card program following a surprise offer by MBNA Corp. Justice James Farley of the Ontario Superior...

Bankrupt Anker Coal plans July exit.
May 2, 2003... Byline: Greg Johnson Anker Coal Group Inc. hopes to leave bankruptcy in two months now that it's filed a reorganization plan. The Morgantown, W. Va.-based coal mining company and 18 of its affiliates late Wednesday, April 30, submitted...

Holdout stymies Malden Mills.
May 2, 2003... Byline: Terry Brennan Bankrupt Malden Mills Industries Inc. may have come to terms with eight major creditors, including GE Commercial Finance, but a holder of a $40 million secured claim is now blocking its path to emerging from its...

Qualcomm set to receive Globalstar stake.
May 2, 2003... Byline: Cheryl Meyer San Diego wireless giant Qualcomm Inc. will likely receive an equity stake in Globalstar LP once the San Jose, Calif. satellite company emerges from Chapter 11 bankruptcy protection. Globalstar owes Qualcomm more than...

Cargill buys assets from Mirant.
May 2, 2003... Byline: Claire Poole Ailing Atlanta power producer Mirant Corp. said Thursday, May 1, it sold most of its natural gas contracts in Canada to Cargill Ltd., a unit of Minneapolis agricultural giant Cargill Inc. While it didn't reveal the...

Insurer AMP to cleave operations.
May 2, 2003... Byline: Nicola Hobday in London Cutting loose from an unsuccessful British expedition, Australian insurer AMP Ltd. plans to demerge its U.K. operations that are struggling with problematic life business. AMP said Thursday, May 1, it...

Lenders bail out Cordiant.
May 2, 2003... Byline: Lisa Clifford in London Lenders threw debt-ridden British advertising group Cordiant Communications plc a lifeline Thursday, May 1, offering emergency funding to take it through until July. Shares in Cordiant soared 73% to 13...

Layoff roundup: week ended May 1.
May 2, 2003... Byline: David Ehrlich A Swedish manufacturer of mobile phone networks, a French engineering group and the U.S. government are among the heavy-hitters in layoffs this week. Stockholm-based Ericsson announced 7,000 job cuts on Tuesday,...

Israel to sell entire El Al stake.
May 2, 2003... Byline: Neal Sandler in Tel Aviv Israel on Thursday, May 1, approved the sale of the state's entire controlling stake in flagship air carrier El Al, a reversal of an earlier decision to sell a minority portion, as it steps up privatization...

Brothel offering does the trick.
May 2, 2003... Byline: Donna Block Australian blue chips welcomed a red-light investment Thursday, May 1, as the Daily Planet Ltd., Australia's largest and best-known brothel, made a rousing debut on the Australian Stock Exchange. Former Hollywood...

Deutsche Telekom hangs up in Malaysia.
May 2, 2003... Byline: Shu-Ching Jean Chen in Hong Kong Deutsche Telekom AG's dispute over a Malaysian mobile operator it partly owns reached the boiling point after the German telecom pulled its board members and ended operating agreements with the...

Telenor trims Greek wireless stake.
May 2, 2003... Byline: Patricia Koza Oslo-based Telenor ASA, Norway's largest telecom group, has sold half of its 18% stake in Greek mobile phone operator CosmOTE for NKr2.1 billion ($300 million), as it continues to restructure its holdings abroad. ...

Buffett hikes PetroChina stake.
May 2, 2003... Byline: Shu-Ching Jean Chen in Hong Kong Warren Buffett has doubled his holdings in the largest listed Chinese company, PetroChina Co. Ltd., after snatching up about HK$1.42 billion ($182 million) worth of shares in less than a month,...

Continental may exit ExpressJet.
May 2, 2003... Byline: Lou Whiteman in Atlanta Continental Airlines Inc. began unwinding its ownership in regional affiliate ExpressJet Holdings Inc. on Thursday, May 1, when the former wholly owned subsidiary disclosed Continental's plan to sell its...

BIL prevails in Thistle tussle.
May 2, 2003... Byline: Brian Cattell in London The two-month battle for control of Britain's Thistle Hotels plc ended Thursday, May 1, after Singapore investor BIL International Ltd. was able to force through its hostile bid and eject management. ...

ITXC stalker tries tenderness.
May 2, 2003... Byline: Chris Nolter Aggressive telecom shopper IDT Corp. has dropped a hostile offer for fellow service provider ITXC Corp. in favor of a softer touch. IDT said Thursday, May 1, it will not attempt to purchase ITXC's shares for the...

State Israeli bank tries to kill Safra deal.
May 2, 2003... Byline: Neal Sandler in Tel Aviv State-controlled Israel Discount Bank is attempting to torpedo the planned sale by Brazil's Safra brothers of their stake in an Israeli bank, according to lawyers involved in the deal. Israel Discount...

KRG Capital buys logistics firm.
May 2, 2003... Byline: Kelly Holman KRG Capital Partners LLC said Thursday, May 1, that it has acquired Carteret, N.J.-based freight company FMI Inc. in a deal valued at more than $91 million. American Capital Strategies Ltd. provided $49 million in...

RoundTable buys stake in Pritzkers' biz.
May 2, 2003... Byline: Vyvyan Tenorio Private equity firm RoundTable Healthcare Partners said Thursday, May 1, it is buying a 65% stake in American Medical Instruments Holdings Inc., a new business formed to combine seven companies controlled by...

Samsonite sews up recap.
May 2, 2003... Byline: Vyvyan Tenorio and John Morris After struggling to reach an accord with creditors on a restructuring for the better part of two years, luggage maker Samsonite Corp. late Thursday, May 1, announced a recapitalization, with $106...

33-year-old ClearMed gets VC funding.
May 2, 2003... Byline: Clifford Carlsen Regulatory changes relating to the reuse of simple medical devices sent ClearMed Inc. to the institutional capital markets for the first time in its 33-year history, and the Bellevue, Wash.-based company has walked...

Startup's $63.5M to battle super bugs.
May 2, 2003... Byline: Katharine Goncharoff Aiming to build an ever stronger arsenal of anti-infective drugs to battle drug-resistant bacteria -- sometimes called "super-bugs" -- Rib-X Pharmaceuticals Inc. has raised $63.5 million in a second round of...

Aventis finally closes sale of Rhodia stake.
May 2, 2003... Franco-German drug maker Aventis SA said Friday it has sold a 9.9% stake in French chemicals company Rhodia SA to Credit Lyonnais SA for [Euro]99.4 million ($111.5 million). Aventis still holds 15.3% of Rhodia. The sale was ordered by European...

Camden Partners in Lombard Medical bid.
May 2, 2003... Baltimore private equity firm Camden Partners is teaming with London investment management company Lion Capital Advisers to buy Oxford, U.K.-based Lombard Medical plc in a share offer worth up to pound sterling970,000 ($1.6 million). Camden and...

Dennis Publishing eyes I Feel Good plc.
May 2, 2003... British magazine group Dennis Publishing (UK) Ltd. on Friday announced a pound sterling5.1 million ($8.2 million) cash offer for I Feel Good plc, the U.K. men's magazine publisher controlled by Loaded founder James Brown. The 8 pence a share...

Duke Energy unit selling Gulf assets.
May 2, 2003... Duke Energy Field Services LP, a Denver company owned 70% by Duke Energy Corp. and 30% by ConocoPhillips, said Friday it agreed to sell assets along the Gulf Coast to Crosstex Energy LP of Dallas for $66.3 million and assets in eastern Oklahoma...

GSI Lumonics gets DRC's Encoder unit.
May 2, 2003... GSI Lumonics Inc., a Billerica, Mass., supplier of laser-based manufacturing systems, said Friday it has acquired the Encoder division of Dynamics Research Corp. for $3.3 million in cash. GSI said the unit should be integrated into its...

Laing sells Beechcroft division for $55M.
May 2, 2003... British construction group John Laing plc has sold its retirement house builder Beechcroft Ltd. to a joint venture between management and Bank of Scotland Corporate Banking, for pound sterling34.1 million ($54.7 million). The price, which...

NN Inc. buys out joint venture partners.
May 2, 2003... NN Inc., a Johnson City, Tenn., producer of ball bearings, said Friday it has bought the rest of its NN Euroball ApS joint venture it did not already own for [Euro]13.8 million ($15.5 million). The purchase, from Swedish rival SKF Group AB and...

Royal Ahold selling unit to Dairy Farm.
May 2, 2003... Troubled Dutch retailer Royal Ahold NV said Friday that it has agreed to sell its Malaysian division to a unit of Hong Kong food and drug retailer Dairy Farm International Holdings Ltd. for an undisclosed sum. The sale closes in the third...

Japan's Daiwa Construction fails.
May 5, 2003... Byline: Charles Smith in Tokyo Japanese condominium builder Daiwa Construction Co. filed for protection from creditors Friday, May 2, with debts of [yen]23 billion ($194 million) after one of its own creditors failed. The company's...

Essential Therapeutics files reorg plan.
May 5, 2003... Byline: Shanon D. Murray Essential Therapeutics Inc. on Friday, May 2, filed a reorganization plan with the U.S. Bankruptcy Court for the District of Delaware that would pay many of its creditors in full. The Waltham, Mass.-based...

Kmart: Out of the frying pan...
May 5, 2003... Byline: Soma Biswas When Kmart Corp. emerges from its 16-month stay in bankruptcy Tuesday, May 6, it will have defied critics who thought it would liquidate. But its toughest task may still be ahead -- keeping such dire predictions at...

Integrated Telecom begins its liquidation.
May 5, 2003... Byline: Greg Johnson Bankrupt Integrated Telecom Express Inc. began to officially liquidate Friday, May 2. But the maker of integrated circuits and software for broadband service providers still faces the prospect of paying $26 million...

Asia Global reveals plans to hand out cash.
May 5, 2003... Byline: Chris Nolter Asia Global Crossing Ltd. has unveiled its plan for dividing roughly $87 million in cash among creditors. The bankrupt telecom filed its reorganization plan and disclosure statement with the U.S. Bankruptcy Court...

Spring thaw: Two IPOs set for this week.
May 5, 2003... Byline: Frances A. McMorris Finally, the comatose initial public offerings market appears to be awakening as two companies get ready to make their debuts. Slated to come first is the nearly $94 million IPO from iPayment Inc., a...

Ahold to sell Malaysian operations.
May 5, 2003... Byline: Renee Cordes Troubled Dutch retailer Royal Ahold NV said Friday, May 2, that it has agreed to sell its Malaysian activities to a unit of Hong Kong-based food and drug retailer Dairy Farm International Holdings Ltd. for an...

Wal-Mart to divest distribution units.
May 5, 2003... Byline: Tara Croft The Deal's first take. Update by 4 p.m. EDT. Wal-Mart Stores Inc. said Friday, May 2, that it had agreed to sell two distribution businesses for a total of $1.5 billion. Berkshire Hathaway Inc., the holding...

London Clubs sells two assets.
May 5, 2003... Byline: Nicola Hobday in London Casino operator London Clubs International plc on Friday, May 2, announced two sales to reduce net debt by pound sterling60 million ($97 million) in a bid to survive until it finishes talks with its main...

Highbrow publisher eyes AOL unit.
May 5, 2003... Byline: Peter Lauria For AOL Time Warner Inc., the pending exit from trade book publishing represents a departure from one of the company's legacy businesses. The deal would also be a departure for Perseus Books Group, the leading...

Indonesia bank bidders jockey for partners.
May 5, 2003... Byline: Shu-Ching Jean Chen in Hong Kong After missing several self-imposed deadlines, Indonesia is expected to pick a winner Monday in the auction of the nation's fifth-largest bank, PT Bank Danamon, as bidders scramble to put together...

Heineken gulps down BBAG.
May 5, 2003... Byline: Renee Cordes in Brussels Dutch brewer Heineken NV agreed Friday, May 2, to acquire Austria's leading beer maker Brau Beteiligungs AG for [Euro]1.9 billion ($2.1 billion) including debt in a deal that makes it the largest brewer in...

Boston Private goes to Gotham.
May 5, 2003... Byline: Donna Block Financial services company Boston Private Financial Holdings Inc. said Friday, May 2, it agreed to buy an 80% stake in New York-based money manager Dalton, Greiner, Hartman, Maher & Co. for about $75 million. Under...

Merrill to exit Thai bank.
May 5, 2003... Byline: Josey Puliyenthuruthel Merrill Lynch & Co. will sell its majority stake in a Thai investment bank to a new buyer, possibly its management, after its partner declined to buy the stake, a senior executive said Friday, May 2. The...

Judge reviews Taubman order for clarity.
May 5, 2003... Byline: Scott Stuart The opinion in Simon Property Group Inc.'s suit to overturn the Taubman family's voting control over Taubman Centers Inc. is being reviewed by the judge who issued it Thursday. Following considerable confusion over...

Ellison, Milken take LeapFrog shares.
May 5, 2003... Byline: David Shabelman in San Francisco Investment firm Knowledge Universe Inc. has distributed 73% of its stake in educational toymaker LeapFrog Enterprises Inc. to its backers, who include financier Michael Milken and Oracle Corp....

Vivendi in talks to sell theme parks.
May 5, 2003... Byline: Peter Lauria Vivendi Universal SA is in early-stage talks to sell its theme parks to the Blackstone Group, sources close to the process said. These people added that such conversations are not only logical, but are also likely...

Deals of the Week: May 2, 2003.
May 5, 2003... Byline: Gerald C. Magpily Billionaire investor Warren Buffett often avoids businesses that are considered exciting or sexy, preferring to focus on acquiring less-flashy companies with steady earnings. Buffett's holding company,...

Buffett goes shopping at Wal-Mart.
May 5, 2003... Byline: Tara Croft Wal-Mart Stores Inc. agreed Friday, May 2, to sell distributor McLane Co. to Warren Buffett's Berkshire Hathaway Inc. for almost $1.5 billion, a dramatic indication that even the world's largest retailer is joining the...

Danish firm sells stake in Wackenhut unit.
May 5, 2003... Byline: Patricia Koza Denmark's Group 4 Falck A/S, the world's second-largest security company, said it has sold its 57% stake in Boca Raton, Fla.-based Wackenhut Corrections Corp. back to the company for $132 million. The sale price...

Boston Private plans New York buy.
May 5, 2003... Byline: Donna Block The Deal's first take. Update by 4 p.m. EDT. The financial services company Boston Private Financial Holdings Inc. said Friday, May 2, that it had agreed to buy an 80% stake in the New York-based money manager...

Money for next-to-nothing.
May 5, 2003... Byline: Kelly Holman If they pull it off, it will be the biggest private equity realization ever. A clubbed entity consisting of Texas Pacific Group, Leonard Green & Partners and TCW/Crescent Mezzanine Management III LLC plans to sell...

What's Hot: May 2, 2003.
May 5, 2003... Byline: George White Dealflow soared higher this week as venture capitalists showered the biotechnology and healthcare sector with money. Total funding jumped 64% to $338.45 million from $206.23 million the prior week. Driving the upswing...