Markets Remain Shut

MARKETS REMAIN SHUT  |  Stock markets will be closed Tuesday for a second day, as New York deals with the aftermath of Hurricane Sandy. While the New York Stock Exchange currently plans to be back in business on Wednesday, it may have to rely entirely on electronic trading, the exchange said late Monday, adding that the physical floor had not been damaged by the storm. This is the first time since 1888 that weather has forced markets to go dark for consecutive days.

The effect of the market closure on trading could be limited, according to Larry Tabb of the research firm Tabb Group. Still, it means that some companies, like Restoration Hardware, may have to delay their initial public offerings. For the exchanges, the stoppage could translate into $1 million of lost transaction fees each day, a relatively minor amount, according to Richard Repetto, an analyst at S andler O'Neill & Partners.

Over all, the storm could cause economic losses ranging from $10 billion to $20 billion, according to the catastrophe risk modeling firm Eqecat, The New York Times reports. Insurers could be responsible for covering $5 billion to $10 billion in property and casualty claims.

The New York City area continues to deal with flooding and power outages. Cars were seen floating on Wall Street on Monday. At the new luxury high-rise at 157 West 57th Street, where top-floor apartments have been marketed for around $90 million, a broken crane dangled 1,000 feet above the ground. With tunnels and subways flooded, the Metropolitan Transportation Authority said on Tuesday morning that the storm was the worst disaster in the subway's history.

 

UBS OVERHAULS INVESTMENT BANKING  |  UBS announced plans to cut up to 10,000 jobs as part of a major restructuri ng of its investment banking division. The restructuring is weighing on earnings. UBS reported a loss of 2.2 billion Swiss francs ($2.3 billion), in the quarter, compared with a profit of 1 billion francs in the period a year earlier. The chief executive of UBS, Sergio P. Ermotti, said the changes would “transform the firm and position it for future success,” adding that the “decision has been a difficult one.”

Deutsche Bank announced results that were essentially flat for the third quarter, reporting net profit of 755 million euros ($795 million)i it posted net profit of 777 million euros in the period a year earlier. Its investment bank proved a rare bright spot, reporting a 67 percent increase in revenue. “In the near term, the macro environment remains uncertain, and we will maintain a cautious and risk-focused approach,” said two co-chief executives, Anshu Jain and Jürgen Fitschen.

 

ON THE AGENDA  |  The storm has upended many plans, and it may even cause the monthly jobs report to be delayed. Ford Motor, Pfizer and BP are scheduled to report quarterly results. The Standard & Poor's/Case-Shiller index of home prices is released at 9 a.m.

 

A $5 BILLION BUYOUT?  | 
Reynolds and Reynolds is considering a private equity buyout that could be worth about $5 billion, according to Reuters. The company, which sells software to auto dealers, is working with Qatalyst Partners and Deutsche Bank, and the potential investors include K.K.R., Reuters says.

 

 

 

Mergers & Acquisitions '

Bayer to Buy Schiff for $1.2 Billion  |  The German pharmaceutical company Bayer is paying $34 a share for the American vitamin maker Schiff Nutrition, a 47 percent premium over its closing price on Friday, Reuters reports. REUTERS

 

Clean Harbors to Acquire Safety-Kleen for $1.25 Billion  |  After filing for an initial public offering, Safety-Kleen has found another way to let its owners cash out: by selling the company. DealBook '

 

Riverbed Technology to Buy Opnet for $993 Million  |  Riverbed Technology said on Monday that it planned to buy Opnet Technologies for $993.3 million in cash and stock, bolstering its business in optimizing software on corporate networks. DealBook '

 

JDA Software Said to Be for Sale  |  The enterprise software maker JDA Software, which has a market capitalization of about $1.5 billion, is considering selling itself, Reuters reports, citing unidentified people familiar with the matter. REUTERS

 

Polygon Management Is Sold  |  The hedge fund Polygon Management was sold for $98.5 million to the Tetragon Financial Group, which is looking to expand its asset management business, Reuters reports. REUTERS

 

INVESTMENT BANKING '

Behind an Estimated $30 Trillion Drain on Banks, a Lot of Hypotheticals  |  A banking industry group looked into a new derivatives rule and sketched out a situation in which banks were required to come up with as much as $30 trillion in cash. But a deeper look suggests that many of the worries might be overdone. DealBook '

 

Standard Chartered Reports Modest Rise in Profit  |  The bank said operating profit in the first nine months of the year rose by a “mid-single digit” rate. BLOOMBERG NEWS

 

Profit Rises 15% at Big Chinese Bank  |  The Industrial and Commercial Bank of China announced results that beat analysts' estimates, Bloomberg News reports. BLOOMBERG NEWS

 

Evercore Announces Strategic Agreement with VTB Capital  |  The i nvestment bank Evercore Partners has announced a cooperation agreement with its Russian counterpart VTB Capital to develop potential new deals for their clients in Russia and North America. The firms said they hoped to foster cross-border transactions and other projects involving Russian and North American companies. DealBook '

 

Credit Suisse Said to Plan Venture With Qatar Fund  | 
BLOOMBERG NEWS

 

PRIVATE EQUITY '

Chairman of CVC Capital Partners to Retire  |  Michael Smith, who joined CVC in the early 1980s when it was part of Citicorp, will be succeeded by Donald Mackenzie, Rolly van Rappard and Steve Koltes, who will act as co-chairmen of the company. DealBook '

 

Cerberus Said to Partner With Real Estate Firms  |  As it plans a possible bid for Supervalu, Cerberus Capital Management is working with the real estate firms that were its partners in the takeover of Albertsons six years ago, The Wall Street Journal reports, citing unidentified people familiar with the discussions. WALL STREET JOURNAL

 

Carlyle Plans a Real Estate Development in London  | 
FINANCIAL TIMES

 

New Private Equity Firm Breaks From Tradition  |  A start-up firm is “setting out to overturn the traditional private equity fund model, investing on a deal-by-deal basis and only charging fees on invested capital,” Financial News reports. FINANCIAL NEWS

 

HEDGE FUNDS '

Paulson's Gift Highlights a Lack Elsewhere  |  When John A. Paulson gave $100 million to improve Central Park, the donation provided a reminder that “so many of the city's other parks look like ragged country cousins,” writes Michael Powell in his column in The New York Times. NEW YORK TIMES

 

Computer-Driven Hedge Funds Have a Rough Month  | 
REUTERS

 

Grant Capital Partners to Shutter  |  Geoff Grant, founder of the $1 billion he dge fund firm Grant Capital, said in a letter to investors that he did not have an “edge” in the markets, according to The Financial Times. FINANCIAL TIMES

 

Maverick Capital Starts a Fund With Narrower Focus  |  Maverick's new fund, known as Maverick Select, focuses on a selection of stocks that have been the best performers in the firm's portfolio, The Wall Street Journal reports. WALL STREET JOURNAL

 

I.P.O./OFFERINGS '

Telefonica's German Unit Raises $1.87 Billion in I.P.O.  |  The mobile carrier priced shares at the top of its revised price range, for the largest I.P.O. in Europe this year, Bloomberg News reports. BLOOMBERG NEWS

 

VENTURE CAPITAL '

Andreessen Horowitz Invests in a Mobile Billing Company  |  The venture capital firm Andreessen Horowitz is leading a $15.5 million round of financing in ItsOn, which makes software for mobile billing, Reuters reports. REUTERS

 

LEGAL/REGULATORY '

A Dubious Case Found Lawyers Eager to Make Some Money  |  In Paul Ceglia's case against Facebook, his lawyers vouched for a client who is now charged with a “ blatant forgery,” writes Andrew Ross Sorkin in the DealBook column. DealBook '

 

After Accusations of Insider Trading, a Profession of Innocence  |  A Denver businessman arrested on Friday on insider trading charges e-mailed his family and friends over the weekend, proclaiming his innocence and comparing his plight to challenges faced by Nelson Mandela and Steven P. Jobs. DealBook '

 

Milken's Past Invoked in Gupta Sentencing  |  More than two decades after pleading guilty to securities fraud, Michael Milken continues to loom large as a symbol in the world of white-collar crime. DealBook '

 

How Bank of America Could Fight a Go vernment Lawsuit  |  Legal minutiae may give Bank of America a basis to fight the claims in a recent Justice Department lawsuit, which relies on two statutes - the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act - for seeking penalties, writes Peter J. Henning in the White Collar Watch column. DealBook '

 

Corzine Ponders His Next Move  |  Jon S. Corzine, MF Global's former leader, “is struggling to figure out what comes next for himself, according to friends and former co-workers,” The Wall Street Journal reports. WALL STREET JOURNAL