Reuters:   Automakers had a setback in June, an indication that the industry is facing slow growth.

Reuters:   The House passed a bill to extend jobless benefits, but the Senate may reject it.

Reuters:   Walt Disney (NYSE: DIS) bought Apple Inc. (NASDAQ: AAPL) iPhone game maker Tabulous.Reuters:   Google Inc. (NASDAQ: GOOG) bought online travel software company ITA Software for $700 million.

Reuters:   Dell Inc. (NASDAQ: DELL) bought Scalent.

Reuters:   Ed Whitacre of GM said 2010 would be a good year for the company’s IPO

WSJ:   Habitat for Humanity became one of the ten largest homebuilders in the US.

WSJ:   France and Germany are at odds over how Europe should be rebuilt

WSJ:   Mortgage bonds backed by the US government have become more attractive.

WSJ:   There is confusion about how the new financial reform bill will treat derivatives.

WSJ:   Deepwater drilling off Cuba threatens Florida beaches.

WSJ:   Healthcare companies are facing huge changes in how they do business.

WSJ:   Goldman Sachs Group (NYSE: GS) is defending its actions on trades with American International Group (NYSE: AIG) during the financial crisis.

WSJ:   Apple Inc (NASDAQ: AAPL) is still allowing Google ads on its iPhone and iPad.

WSJ:   GE (NYSE: GE) said that CEO Jeff Immelt’s attacks on China and President Obama do not reflect the firm’s views.

WSJ:   Blockbuster will be delisted from the NYSE.

WSJ:   As factory activity rebounds many workers do not have the necessary skills.

FT:   Fears are growing over slow economic demand.

FT:   Apple is pushing its on-demand movies business segment of its iTunes store.

Bloomberg:   Portable missile defend plans may cost $43 billion.

Bloomberg:   Carl Icahn says he owns 38% of Lions Gate.

Douglas A. McIntyre

Benmosche’s latest tantrum is over a lack of board support for the sale price of AIA, the company’s Asian unit. Prudential UK, which planned to buy the unit, was not able to raise the funds. Benmosche advocated dropping the price for AIA to $30.4 billion from the original price of $35.5 billion. The AIG board rejected the plan.

According to Bloomberg, “During a June 25 meeting of New York-based AIG’s board, Benmosche, 66, demanded more control over the divestiture of the company’s main Asia unit, including making top-level management changes.” The action was nothing less than an attempt to undermine the power of AIG’s independent board. Bloomberg also reports that Benmosche insisted that the company’s chairman, Harvey Golub, a seasoned financial executive, step down.

AIG’s board has had to deal with enough of Benmosche’s explosions that it is best to let him go. Golub has enough experience to take his place and it would add stability to AIG’s management. A CEO who repeatedly pressures his board by saying he is prepared to leave is really no CEO at all.

AIG received more than $180 billion in government aid when its financial collapse was imminent. Fed and Treasury officials argued that the insurance company’s web of relationships with large US and foreign banks meant the AIG disaster would spread throughout the credit system

Now AIG’s board is faced with paying back as much of that taxpayer bailout as it possible. The board believes that an IPO of AIA would unlock the value of the business as much as a sale would. No one can know which path is the best way to get the largest price for AIA. That includes Benmosche.

Douglas A. McIntyre

Deutsche Bank and UBS were listed as the underwriters in the deal.

Another SPAC IPO bites the dust.

Jon C. Ogg
February 10, 2009

Jim Cramer was out with another dreaded pre-IPO call, predicting MJN would go higher. That’s  assuming you get in at the IPO price.

This is tentatively the first real IPO of the year, and would actually be the second IPO since August. Just keep in mind that this one is a unit of a large public company, so its status as a true blue IPO is debatable.

The current market conditions, the status of the banking stocks, and the stimulus and rescue package are all wild cards that could affect this deal. It  seems as though Bristol-Myers will either be underselling on price or that investors will wish they had waited. We initially had a tentative pricing set for Tuesday night, but we know better than to hang our hats on any solid date. Or terms, for that matter.

JON C. OGG
February 9, 2009

United Services Management Corporation is a newly organized blank check company formed for the purpose of acquiring (or merging, etc.) with one or more businesses or assets.  It noted that prospective target businesses will not be limited to a particular industry or to any geographic location, although it intends to focus initial efforts to a company that provides services to the government and commercial markets, with a particular emphasis on communications, information technology, or IT, and consulting.

No stock ticker has been taken, although Citigroup is listed as the underwriter for the IPO.

Its chairman and CEO is Joseph Wright, who is Chairman of Board of Intelsat Ltd.  He was CEO of PanAmSat from 2001 until selling that business in 2004.  In 2005, he led the company with its IPO and it noted that this combined of Intelsat/PanAmSat operation was acquired by BC Partners for some $16.5 Billion this month.  Other officers are listed as follows:

• Mr. Bernikow was Deputy Chief Executive Officer at Deloitte & Touche;
• Peter A. Cohen, founded Ramius Capital Group, LLC, a privately owned investment management firm that manages approximately $12 billion of assets;
• James A. Mitarotonda, is Chairman of the Board, President and Chief Executive Officer of Barington Capital Group, L.P., an investment firm that he co-founded in November 1991;
• Jerry Markowitz, is currently a partner in Conifer Securities, a supplier of infrastructure for investment managers.

Jon C. Ogg
February 28, 2008

Many investors view this IPO as attractive due to the lack of competition in this market, strong earnings and the fact that the Chinese government allocated $175 Billion for railroad investment over the next five years. Trading on Shanghai is anticipated for March 10 and the Hong Kong listing is set for March 13.

Rachel Lopez
February 27, 2008

It also appears that a public offering in Hong Kong will follow the Shanghai offering although the specific price range for the 1.706 shares has not been determined and will be limited to select foreign investors.  The listing on Shanghai is anticipated for March 10 and the Hong Kong listing is set for March 13.

In China’s most recent 5 year plan, they allocated $175 billion for investment in railroad infrastructure to alleviate bottlenecks in the booming economy.

Rachel Lopez
February 22, 2008

Morgan Joseph is listed as the underwriter and the company has noted for filing purposes that it will sell up to $36 million in securities.  Redstar will also be listed on the OTCBB rather than being a fully-listed SPAC on AMEX or NASDAQ.

Redstar Partners, Inc. is a Cayman Islands blank check company recently formed (incorporated on January 3, 2008) for the purpose of acquiring, through a share capital exchange, asset acquisition, plan of arrangement, recapitalization, reorganization or other similar business combination, or control through contractual arrangements, an operating business having significant operations in the People’s Republic of China.  It says that it will not be limited to a particular industry, although it notes that it does intend to focus on the electrical equipment and components industry.

Here is the company’s brief description of management:

• Nathan J. Mazurek, Chairman of the Board & CEO/President hasbeen directly involved in over 20 consummated acquisition, divestiture,joint venture and investment transactions involving his companies,their factories and product lines in the electrical equipment andcomponents industry. Mr. Mazurek’s companies have historically beenfocused on circuit breaker, transformer and film capacitor products,and in the course of the last 20 years, he has developed an extensivenetwork of relationships with domestic, international and Chinesecompanies in the industry.
• Margaret Wong, Vice Chairman of the Board & EVP, startedconducting business in China in 1984 and is a recognized businessentrepreneur and advocate in the areas of Sino-American trade andcultural relations through her past and present roles as Board Memberof the California Chamber of Commerce International Committee and asAdvisor to the California Asian Chamber of Commerce, among others. Thecompanies Ms. Wong controls in China specialize in both the manufactureof electrical and lighting products and the export of environmental andenergy-related technology and equipment for wastewater treatmentprojects in China.
• Alex Ping Zhang, Vice President, has over 15 years of managementexperience in China. Prior to founding an environmental technology andequipment export company with Ms. Wong, Mr. Zhang established abusiness in China for Alanco Environmental Resources Corp. byintroducing and applying U.S. chemical processing technology to Chinesebusinesses. In addition, as a member of the American Chamber ofCommerce in Shanghai, Mr. Zhang actively works to enhance economiccooperation and participate in business opportunities between the U.S.and China.

Jon C. Ogg
February 21, 2008

Venoco Acquisition Company, L.P. is a Delaware limited partnership formed on September 25, 2007 by Venoco, Inc. that was set up to acquire, exploit, develop and produce oil and natural gas properties. 

This company has filed to sell 9.1 million units and has listed Lehman Brothers, Citigroup, and UBS as its underwriters.  The underwriters also have listed 1.365 million units for the overallotment if they choose to sell extra shares.

The company’s assets have consisted primarily of mature oil and gas fields in coastal California and onshore in Texas.  As of December 31, 2006, the Partnership Properties had estimated proved reserves of 21.2 MMBoe, of which 86.2% were oil and 81.1% were classified as proved developed.  It also had a reserve-to-production ratio of 15.1 years. As of September 30, 2007, the Partnership Properties consisted primarily of working interests in 325 gross producing wells, with an average 38.5% working interest.

Jon C. Ogg
February 14, 2008

Light Sciences Oncology develops innovative technology that treats solid tumors with its light-activated Light Infusion Therapy (Litx). The technology could potentially treat cancer as a chronic disease because it has the capability to be used repeatedly throughout a patient’s life. Clinical testing for patients with metastatic colorectal cancer and hepatoma are in Phase III testing and treatment for glioma is in Phase II testing.

Light Sciences Oncology isn’t the only recent withdrawal citing, “unfavorable market conditions” lately. Tully’s Coffee is another recent victim of the looming recession. SPAC’s seem to be the only brave ones still submitting IPO filings .

Rachel Lopez
February 8, 2008