2012 Biggest Deal Makers and Deal Brakers – hedge fund news
Steven Davidoff to Dealbook
HEDGE FUND ELLIOT ASSOCIATES VS. ARGENTINA
Elliot Associates vs Argentina- hedge fund and its cohorts earn an A for clever legal arguments and wrangling intended to force Argentina to pay off the country’s defaulted bonds. While it remains to be seen if the fund will succeed, along the way it has managed to seize an Argentinian frigate in Ghana and made the “pari-passu” clause a conversation topic, while also raising fears the sovereign debt market would be thrown into chaos.
NYSE European regulators thwarted a tie-up of Deutsche Börse and NYSE Euronext, shutting down a deal that would have relocated an American institution to Europe. But the A goes for persistence, since last week NYSE agreed to sell itself to the IntercontinentalExchange for $ 8.2 Billion. Read More
APPLE-AUTHENTEC Apple showed its secretive side, forbidding a $358 million acquisition, AuthenTec, from announcing the deal through a news release or any other public communication other than a brief statement in a securities filing. Apple also negotiated a “crown jewel” lockup with AuthenTec that scared off other potential bidders by giving the electronics maker the option to license almost all of AuthenTec’s useful technology if another company acquired AuthenTec instead. Apple’s heavy hand earns it an F.
CANADIAN PACIFIC RAILWAY’S PROXY CONTEST Mr. Ackman earns another A by bringing large-scale activist investing to Canada and shaking up the clubby investment community there. Canadian Pacific’s board of old-line Canadians viewed him as a barbarian at the gate and resisted to the bitter end. But the company’s shareholders preferred Mr. Ackman’s money to high society. It is now trading around its all-time high, much better than J. C. Penney, another investment by Mr. Ackman, which has performed poorly.