Qatar Imperils Big Merger of Commodity Companies  | A megamerger in the natural resources business is close to falling apart.
On Friday, shareholders in Xstrata, one of the world's biggest miners of copper and coal, are to vote on an offer from Glencore, which dominates the global trading of such materials. The deal, which values the combined company at $86 billion, would create a commodities behemoth whose activities touch all types of companies that need raw materials to make cornflakes, cars, mobile phones and other goods.
But Qatar Holding, a unit of the Persian Gulf nation's sovereign wealth fund, is poised to squash the acquisition.
Over the last year, Qatar, an increasingly powerful investor with holdings in large multinational companies, has spent nearly $5 billion amassing a 12 percent share of Xstrata. That stake gives Qatar a big voice in the process, and it plans to vote against the deal.
DealBook '
Pruning Hedge Fund Regulation Without Cultivating Better Rules  | Fresh from having declined to constrain money market funds, the Securities and Exchange Commission has moved to loosen marketing constraints on hedge funds, writes Jesse Eisinger in The Trade.
Two weeks ago, the agency threw up its hands and said it would not be able to defend millions of investors from money market funds that do things like invest in dodgy European bank bonds yet proclaim themselves to be perfectly safe.
Instead, the S.E.C. - mandated by Congress through its misnamed and harmful JOBS Act - proposed rules last week to lift advertising restrictions for hedge funds and other kinds of private investment offerings. The rules haven't been completed, but we can look forward to an ad featuring a wizened couple in matching tubs overlooking a sunset, holding hands and talking about how they just put money with the next George Soros.
The old rules for hedge funds make little sense. Surely, hedge funds should be able to promote themselves to investors with data about their returns and methods. But there's a problem: The S.E.C. does not have any new resources and has not put in place any policies to police these promotions.
DealBook '
European Central Bank to Unveil Its Plan  | Markets are expecting an announcement of bold action on the part of the European Central Bank to combat the Continent's debt crisis. A press conference is set for 8:30 a.m. Eastern Time.
EUROPEAN CENTRAL BANK
Warren Takes on Wall Street in Convention Speech  | Elizabeth Warren, the Harvard professor and Senate candidate who conceived of the Consumer Financial Protection Bureau, gave that agency a shout-out during her speech at the Democratic National Convention on Wednesday.
She also had some choice words for the financial industry: “Wall Street C.E.O.'s - the same ones who wrecked our economy and destroyed millions of jobs - still strut around Congress, no shame, demanding fav ors, and acting like we should thank them.â€
WALL STREET JOURNAL Â |Â NEW YORK TIMES
Robert Rubin Falls in Pool  | The former Treasury secretary probably didn't intend to go swimming during a happy hour party at the Ritz-Carlton in Charlotte, N.C.
HUFFINGTON POST
As Conventions Unfold, Goldman Sits on Sidelines  | Goldman Sachs has contributed to the Democratic and Republican conventions in years past, but this time around, amid increased scrutiny on special interests, the firm has chosen not to finance either party's event, Bloomberg News reports.
BLOOMBERG NEWS
U.P.S. Deal for TNT Express Hits Fresh Delays  | United Parcel Service said on Wednesday that its $6.5 billion acquisition of TNT Express could be delayed until 2013, as European antitrust officials extended the review period for the deal.
DealBook '
A.I.G. to Sell Part of AIA Stake  | A.I.G. is looking to raise up to $2 billion from the sale of shares in the AIA Group, money that it plans to use to finance a repurchase of some of its own shares from the United States government, Reuters reports.
REUTERS
Shareholders to Vote on Heineken's Bid for Asian Brewer  | As Heineken looks to take control of Asi a Pacific Breweries by buying a 40 percent stake, shareholders of Fraser and Neave, which owns the stake, will weigh in on Sept. 28, Reuters reports.
REUTERS
Controlling Shareholder of Luxottica to Sell Stake  | The holding company Delfin Sarl, which owns 66 percent of the Luxottica Group, plans to sell 7 percent of the Italian eyewear maker, a deal that could be worth about $1.3 billion, The Wall Street Journal reports.
WALL STREET JOURNAL
Lenovo to Buy Brazilian Electronics Maker  | The computer maker Lenovo is buying Digibras for roughly $147 million as it looks to expand in Brazil, Bloomberg News reports.
BLOOMBERG NEWS
Goldman Expands Offerings for Wealthy Individuals  | Goldman Sachs's private bank, which lends to wealthy individuals, is offering two new products that together are expected to increase the unit's lending by almost $1 billion, The Financial Times reports.
FINANCIAL TIMES
Former Goldman Executive Joins Strategic Value Partners  | Stephen J. McGuinness, the former co-chief operating officer of Goldman Sachs Asset Management, has joined the investment firm Strategic Value Partners as a senior managing director.
DealBook '
Goldman Energy Banker to Join R.B.C. Â |Â Eric Batchelder, who advised energy and power c ompanies while at Goldman Sachs, has joined the investment bank of the Royal Bank of Canada, and is still based in New York, Bloomberg News reports.
BLOOMBERG NEWS
Nomura Gives More Details on Cost-Cutting Plan  | At a briefing in Tokyo on Thursday, Nomura said 45 percent of its planned $1 billion in cuts would come from the region encompassing Europe, the Middle East and Africa, with the Americas accounting for 21 percent, Reuters reports.
REUTERS
Citigroup to Open a Commodity Trade Financing Business  | The bank is looking to gain market share from European lenders, as it sets up a unit to provide financing to firms that trade commodities, The Financial Times reports.
FINANCIAL TIMES
Morgan Stanley Brokers Meet With the Boss  | Gregory J. Fleming, the president of Morgan Stanley Smith Barney, met with financial advisers to discuss technology problems and assure them the firm was working to make improvements, after a report said some brokers were considering leaving, Bloomberg News reports.
BLOOMBERG NEWS
Team of Morgan Stanley Brokers Heads to Barclays  | A group of Morgan Stanley Smith Barney Brokers that includes Wayne Chrebet, the former wide receiver on the Jets, is joining the wealth management division of Barclays, Bloomberg News reports.
BLOOMBERG NEWS
UBS Said to Seek a Leader for Brazil Unit  | As Lywal Salles, UBS's chief executive for Brazil, prepares to retire, the Swiss bank is looking to hire a replacement, Bloomberg News reports, citing two unidentified people with knowledge of the plans.
BLOOMBERG NEWS
Survey Deems JPMorgan's Investment Bank Best Place to Work  | In a survey of some 3,500 Wall Street professionals, JPMorgan's investment bank was selected as the best firm to work for in North America this year, judging by quality of life and overall prestige.
DealBook '
Greenhill Expands Capital Advisory Group  | The boutique investment bank Greenhill & Company has hired three people in its private capital advisory group, betting the division will become a significant source of revenue at a time when merger-related work can be scarce.
DealBook '
Credit Card Companies Take an Interest in Myanmar  | MasterCard is preparing to introduce its cards to Myanmar, and other companies are also taking an interest in what The Wall Street Journal calls “arguably the world's sexiest new frontier market.â€
WALL STREET JOURNAL
Blackstone Raises $2.5 Billion Fund for Energy Deals  | The private equity giant Blackstone Group is equipped with a new war chest to try to take advantage of a recent rise in energy deals, Reuters reports.
REUTERS
Billabong Said to Get a R ival Offer From Bain  | The Australian surf wear company Billabong, which has been courted by TPG, received another offer of about $707 million from Bain Capital, setting the stage for a possible bidding war, Bloomberg News reports, citing unidentified people familiar with the matter.
BLOOMBERG NEWS
Special Tax Rate Underlies a Private Equity Debate  | Tax experts disagree on whether the practice of re-routing management fees into capital gains is legal. But The New York Times editorial board writes: “The best way to end this problem is to get rid of the special rate for capital gains. As long as income from investments is taxed at a lower rate than income from work, there will be no stopping the search for ways, legal or otherwise, to pay the lower rate.â€
NEW YORK TIMES
Home Security Company Said to Consider Selling Itself  | Vivint, which sells home security technology, could be valued at as much as $2 billion in a sale, and has attracted interest from firms including the Blackstone Group, Reuters reports, citing unidentified people familiar with the matter.
REUTERS
Biggest Hedge Funds Get Bigger  | According to the biannual Billion Dollar Club survey from Absolute Return, the largest 268 hedge funds in the Americas oversaw $1.42 trillion as of July 1, compared with $1.34 trillion six months earlier.
AR MAGAZINE
New York Pension Official to Join Bridgew ater  | Ranji H. Nagaswami, who was New York City's first chief investment officer for pensions, has joined the giant hedge fund Bridgewater Associates, Bloomberg News reports.
BLOOMBERG NEWS
James Simons Hosts a Fund-Raising Event  | James H. Simons, the billionaire hedge fund manager, hosted a briefing in Charlotte, N.C., on Wednesday for Democratic donors and potential donors, a crowd that included Rahm Emanuel, the Chicago mayor, The New York Times reports.
NEW YORK TIMES
Defensive Hedge Funds Forced to Play Catch-Up  | Some funds that bet on a decline in stocks this summer may have to start buying “just to avoid being left in the dust,†The Wall Street Journal writes.
WALL STREET JOURNAL
Safeway Plans I.P.O. of Gift Card Unit  | Shares of Safeway climbed after the supermarket chain announced plans to sell a minority stake in its fast-growing Blackhawk Network gift card business.
DealBook '
Lord & Taylor Owner Hudson's Bay Explores I.P.O. Â |Â Plans for an initial public offering in Toronto are in the works for the Hudson's Bay Company, parent of The Bay stores in Canada and Lord & Taylor in the United States, according to two people briefed on the talks.
DealBook '
R.B.S. Insurance Unit to Cut 900 Jobs  | The Direct Line Insurance Group, owned by Royal Bank of Scotland, has announced plans to cut about 900 jobs as it looks to reduce costs ahead of an initial public offering.
DealBook '
Malaysian Property Trust Said to Raise $269 Million in I.P.O. Â |Â The IGB Real Estate Investment Trust, an arm of the Malaysian property developer IGB, priced its units at the top of an expected range, Bloomberg News reports, citing three unidentified people with knowledge of the matter.
BLOOMBERG NEWS
Adviser to Start-Ups Warns Against Google Ventures  | Paul Graham, a founder of Y Combinator who coaches dozens of entrepreneurs, said in an e- mail on Wednesday that start-ups should avoid taking “lowball offers,†especially from the venture capital affiliate of Google, Business Insider reports.
BUSINESS INSIDER
Amid Hacker Attacks, Security Start-Ups Draw Attention  | Accel Partners announced a big investment in Tenable Network Security, a maker of security software, as venture capital firms plow more and more money into such start-ups.
DealBook '
The Potential Pitfalls of Crowdfunding  | In a post on Techonomy, Eric Schonfeld writes that anyone planning to engage in crowdfunding under new rules shouldn't expect a Kickstarter-like experience. He writes: “The instant you get shares for your money, no matter how few, your expectations change. It becomes a n investment and most people will want a return on that investment, otherwise they will see it as a failure and won't be likely to invest again.â€
TECHONOMY
Another Trader Under Scrutiny in JPMorgan Loss  | Julien Grout, who worked in JPMorgan Chase's chief investment office and reported to Bruno Iksil, is now the fourth trader to be investigated by authorities for the bank's multibillion-dollar trading loss, Reuters reports, citing unidentified people familiar with the situation.
REUTERS
Greece Again Takes Center Stage  | Prime Minister Antonis Samaras of Greece is working to craft a deal to cut even more deeply from government spending be fore international lenders arrive for an inspection. The New York Times writes: “The country's next installment of bailout money will depend on his getting a passing grade. But on the streets of Athens, there is a sense that this latest effort to placate Greece's lenders may be a last straw for the public.â€
NEW YORK TIMES
Regulators Clarify Timing of New Derivatives Rules  | After months of uncertainty, federal authorities now say some new derivatives rules will not take effect until Jan. 1, providing a brief - but important - extension to Wall Street.
DealBook '
When Fairness Opinions Are Used Outside of Mergers  | The growth of fairness opinions, which are used in merger deals to provide a gauge of a company's wor th, in nontraditional situations is an emerging trend that deserves scrutiny, the author writes.
DealBook '
Newspaper Publisher Files Again for Bankruptcy  | The Journal Register Company, which filed for Chapter 11 bankruptcy protection on Wednesday three years after emerging from an earlier bankruptcy, is pursuing a quick sale, its owner said, according to The Associated Press.
ASSOCIATED PRESS
