A video to start: FT shows the rise and fall of Carlos Ghosn, whose industry giant has become an international refugee. New 20 minute film..
Welcome to due diligence. This is a briefing on dealmaking, private equity and corporate finance. This article is an on-site version of the newsletter. Sign up here Send your newsletter to your inbox every Tuesday through Friday. Please contact us anytime. Due.Diligence@ft.com
Inside Softbank / Green Silnexus
Some of the greatest financial stories in recent years – Wire card, Green threshold When We work – Connected by a name: Softbank..
This may not come as a surprise to DD readers, but some properties of these compounds can be. Rob Smith and Arash Massoudi from DD and Stephen Morris from FT do it all. This deeply narrated story..
It starts on the phone in October 2019 Rajeev MisraThe head of SoftBank’s Vision Fund, which invested $ 1.5 billion in Greensill, noted that the group’s German banks have around 1.5 billion euros exposure to metal magnates. Sanjeb Gupta..
Lex Greensill, left, and Rajeev Misra. In 2019 Greensill Mithra tells how much the Greensill Bank was exposed to the Sanzibugupta empire © FT montage
Speak calmly during the call Lex Greensill The company that bears his name tried to reassure Misra that Gupta’s commitment to the company was zero. Only when Misura put pressure on the engagement Capital of GreensillBank daughter, Green threshold bank, The Rex revealed its appearance.
The story includes Green Sill, Softbank, Swiss credit, Gupta and WeWork Katerra..
Lex Greensill spent weeks begging SoftBank executives, including calling up a former UK Prime Minister David Cameron Go to Tokyo to meet the CEO of the Japanese group Masayoshi Son.. My son later called Green Sill a “money guy”.
When WeWork’s 2019 IPO plan was in trouble, his son took Lex to Tokyo and devised a plan to borrow more than $ 3 billion to an office leasing company. “You bring Masa and Rex into the room together and you get some crazy shit,” said one person involved in the negotiations.
After a pandemic market turmoil in March 2020, Credit Suisse investors withdrew billions of dollars from the Greensil-linked Softbank fund Inject gently He invested more than $ 1 billion of his own money in the fund and instead received more shares in Greensil.
Greensil used Credit Suisse’s fund to help fund some of the Vision Fund’s weakest companies.
When Softbank’s portfolio company Catera had to restructure its debt, including a loan that Greensil made through the Credit Suisse fund, Softbank covered the loss the restructuring would inflict on Swiss bank funds. Sent $ 440 million to Greensil for this. But the executive later found that $ 440 million Have never done it before To the Credit Suisse fund.
After the collapse of Greensil, Credit Suisse’s relationship with Softbank was so cold that the Swiss bank recalled a personal loan it had given its son.
Overall, it helps explain his son’s humility at Softbank’s annual earnings announcement in May – and the incredible slides he presented below regarding Green Sill.
Bankruptcy on Monday: Two mega-margers collapse
Insurance brokers were the most turbulent day for the stock market in March 2020 Aeon When Willis Towers Watson Announcing a $ 30 billion alliance..
The S&P 500 formed a crater when it became clear that the coronavirus crisis in China had escalated in a pandemic, forcing governments around the world to take blockade measures.
The timing of the announcement likely predicted the final collapse of the deal. Aon and Willis Said on Monday They stopped the merger that would have created the largest insurance broker in the world.
Aon will pay Willis a $ 1 billion outage fee based on terms announced in March 2020 © REUTERS
Dissolution was initiated by US Department of Justice, In June Procedure to prevent pure stock trading, claims that it eliminates competition and likely leads to higher prices.
For some time we seemed to be heading for a court confrontation to resolve the issue after the parties Agreed start on November 18th For the negotiation. Instead, the company decided to avoid the withdrawn court battle.
Every CEO Gregory case On Monday, the company announced that it had reached a dead end with the Justice Department. You can see why Aon’s attorney said he was in a “wounded world” if he lost. The company has to pay Willis a billion dollar break.
Gregory Case, CEO of Aon
While we are working on the topic of collapsing transactions: The acquisition of 18 billion euros in German homeowners German living From rivals Vonovia We’ll meet Again “Dead in the Water” Quote from the latter CEO Rolf Bourgu..
Vonovia bid Offer 52 euros in cash Approved by 47.62% of Target shareholders per share in Deutsche Wohnen, under the minimum requirement of 50%.
It is the first time in five years that Deutsche Wohnen shareholders have closed a deal between the two, including a hostile offer in 2016.
That is not to say that what would have been one of the biggest deals in Europe this year cannot be revived someday.
Before the tax law was changed on July 1, Vonovia was able to acquire more than 10% of Deutsche Wohnen. This avoids stamp duty payments even if you end up buying a competitor’s assets.
Top lawyers in London invest in trading boom
Even if some mega-deals fail, M&A advisory lawyers find themselves in a phase of conflict with many other lawyers who are ahead.
The UK’s largest companies have achieved record results, paying out around £ 2 million each to equity partners. I’m Kate Beioley from FT. report..
Clifford Chance Against the background of the wave of M&A activities by private equity firms, the three months leading up to April saw us experience the highest quarter of all time. The partner confirmed that take-away wages rose an average of 9% to £ 1.85 million.
A rival in the “magic circle” of the British top company, Allen & OverlyThe “very high” M&A level and the boom in blank check firms are said to have led to a 19% increase in pre-tax profits. The equity partner bagged an average of around £ 1.9m in profit sharing. That is 17% more than in the previous year.
As a result, Allen & Overy and Clifford Chance’s equity partners received an average of around £ 2m each © Robert Evans / Alamy.
This is very different from the initial response of many law firms to a pandemic, where the affiliate distribution is reduced to support cash for fear of losing M&A activity.
I’m very busy these days so burnout is a problem. The high demand has also contributed to the fierce talent war that has forced US companies to compete with UK companies, causing salaries for newly qualified lawyers to soar by well over £ 100,000.
So far, only two of the Magic Circle companies have contacted us. All eyes are now fixed Freshfields Bruckhaus Delinger When Linklaters..
Joe Sullivan, Former boss Add mason, i join All Spring Global Investments, Newly renamed name Wells Fargo Asset Management, As Chief Executive Officer and Chairman, he exchanges ideas Nico Male, Remains as Senior Advisor.
Jones day Assumed Four new global dispute resolution attorneys at the company’s Perth office.
The secret of success Yves Perrier has made Amundi a leading European wealth management company through multiple successful integrations and organic growth. Perrier has some interesting advice when other money managers try to scale. Don’t rely on M&A. (((FT)
Life lottery Formerly considered a retirement plan, Tontine is now known as a storyline in popular television shows such as: Mash When The Simpsons. But since people are living longer and the pension system is underfunded, it’s not a bad idea to revive them. (((FT Rex)
Roaming trader Sam Bankman-Fried, a 29-year-old Californian who founded the crypto trading platform FTX, is part of a group of crypto nomads who started a company outside the reach of US regulators. However, US investors continue to participate. (((NOW)
Recommended newsletter for you
Scoreboard – Important news and analyzes of business decisions in the area of sports.sign up here
Lex newsletter – Check out letters from Rex centers around the world every Wednesday and reviews of the week’s best commentary every Friday here
The story of Masayoshi Sons “Money Guy” Source link The story of Masayoshi Sons “Money Guy”