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Knight Ridder/Tribune Business News
Feb. 6 -- It's been a good week for initial public offerings, and Fort Worth-based TPG Partners joined the activity yesterday when its Del Monte Foods Co. sold 16.7 million shares to raise $250 million.
Yesterday also saw the first day of trading for Delphi Automotive Systems Corp., a General Motors spinoff and the seventh-largest IPO in U.S. history. Delphi, the world's biggest auto parts maker, issued 100 million shares at $17 each to raise $1.7 billion.
They follow Perot Systems' spectacularly successful IPO on Tuesday, which as of yesterday was up 412 percent from its $16 issue price. It closed yesterday at $66, down 6 cents from Thursday, when it spiked as high as $85.75 before falling back.
Del Monte and Delphi couldn't match that.
Del Monte, ticker symbol DLM on the New York Stock Exchange, rose 3 percent from its $15 issue price to close at $15.50. Delphi, ticker symbol DPH on the NYSE, revved to a 9.6 percent gain, closing at $18.63 a share.
TPG's parent, Texas Pacific Group, is headed by David Bonderman, former investment adviser to Fort Worth's Robert M. Bass. TPG acquired Del Monte Foods in 1997 for $809 million, including $161 million in cash from TPG and its investors, according to government filings. The investors got back an unreported amount a year ago when they sold preferred shares with a face value of $35 million and paying 14 percent interest annually.
Source: HighBeam Research, Del Monte Foods, Delphi Automotive Systems Offer Stock to Public.