BAIN PULLS OUT OF RAC AUCTION
Bain Capital has pulled out of the bidding for RAC, the roadside rescue business of UK insurer Aviva. The US private equity group last week dropped out of the auction after bidding less than its rivals, people close to the situation said. That leaves Carlyle, Clayton Dubilier & Rice and BC Partners still in the running for the company, which is valued at about £1bn.
CDB SEEKS TPG STAKE
China Development Bank, one of the country’s largest state-owned banks, has applied to regulators for permission to join a group of sovereign wealth funds buying a minority stake in buy-out firm TPG, according to people familiar with the matter. CDB’s request is the latest indication of the private equity fever sweeping China as dealmakers leave the major buy-out firms to set up their own investment firms.
SHORT SELLERS SET TO TARGET LINKEDIN
Shares in LinkedIn are expected to come under downward pressure this week, as they attract the attention of aggressive traders who are prepared to bet on a fall in the business network’s stock price. Tomorrow restrictions on short selling the stock will be lifted. A short sale involves borrowing stock and selling it, in the hope that the price falls and it can be bought back more cheaply – generating a profit.
FOOD PRODUCERS ACCUSED OVER PALM OIL
Plantation owners and pressure groups are calling on food producers such as Unilever and Nestlé to stop exploiting an environmental “offset” scheme to buy palm oil from unsustainable sources. Growing demand and spiralling prices in the $50bn palm oil market mean plantation owners are clearing forests to plant more palm trees.
CITY WATCHDOG QUESTIONS FAILED BANK OVER SIR FRED’S “OFFICE AFFAIR”
Royal Bank of Scotland is braced for the City regulator to refer to Sir Fred Goodwin’s alleged affair with a colleague in its long-awaited report into the bank’s collapse. As fallout from Sir Fred’s superinjunction spreads, the Financial Services Authority (FSA) has contacted the bank for details of the alleged liaison involving the former RBS chief executive.
SIZE MATTERS AS COMPUTER MAKERS FALL ON HARD TIMES
A combination of a tighter economic environment and the advent of tablet computers has put the squeeze on the makers of traditional computers and laptops. Demand was at a standstill in the first three months of this year as consumers and businesses put off buying new equipment.
The Daily Telegraph
JAGUAR LAND ROVER TO PROVE RECOVERY WITH £1BN PROFIT
Jaguar Land Rover will this week unveil record annual profits exceeding £1bn, completing the luxury car maker’s remarkable recovery from the depths of the recession. JLR is forecast to post net profits in the region of £1.1bn for the year to 31 March, compared with a gain of £32m last year and a £281m loss in first 10 months under new owners Tata Motors. The record profit comes only two years after the car maker was forced to seek Government support
SOHO HOUSE SALE CALLED OFF
Soho House has been taken off the market after its two shareholders agreed not to sell the business for at least another year. The private members’ club business received a number of private equity approaches valuing the business at as much as £300m.
THE WALL STREET JOURNAL
RUSSIAN FIRM LEADS IPO PACK
Eight initial public offerings will make their US debuts this week, but there’s one standout: Russian Internet search engine Yandex NV.
Consumer Internet stocks are a hot commodity now, especially following LinkedIn stellar initial public offering last week, during which its shares doubled on the first day.
TNT PRESSED TO SELL EXPRESS BUSINESS
Dutch logistics company TNT NV is preparing to separate its mail and express operations, but pressure on management at the express business is mounting as doubts grow over its ability to deliver a turnaround and some shareholders argue the company should explore a sale. If shareholders approve the company’s split-up proposal, Chief Executive Peter Bakker will depart, leaving behind some unhappy investors.