| RIVAL BIDS FOR DELL The bidding war for Dell is heating up. The computer maker confirmed on Monday that it has received preliminary takeover proposals by the private equity giant Blackstone Group and the investor Carl C. Icahn. As expected, the special committee determined that “both proposals could reasonably be expected to result in superior proposals†and intends to keep negotiating with Blackstone and Mr. Icahn, DealBook’s Michael J. de la Merced reports.
Both proposals are in very preliminary stages: neither has firm financing in place, instead relying on assurances from banks that both parties can raise the money. But the renewed competition for Dell is the latest challenge for Michael S. Dell and his private equity partner, Silver Lake, after some analysts and investors believed that his offer was too low.
Even if Blackstone or Mr. Icahn submits a final offer to the special committee’s liking, Mr. Dell still has the right to match that bid one time, giving him a way to guide the bidding, according to DealBook’s Deal Professor, Steven M. Davidoff. “It still may be that the Silver Lake group raises its bid a few dollars a share just to lock up this contest,†Mr. Davidoff writes.
CYPRUS SECURES BAILOUT DEAL After last-minute negotiations to avoid a collapse of Cyprus’ banking system, European politicians agreed early on Monday morning on a bailout package to keep the small country in the euro zone. The deal will drastically cut the size of Cyprus’ debt-laden banking sector, and force losses on depositors and bondholders of the country’s largest lender, according to The New York Times.
As part of the agreement, the small European country will also receive a bailout package worth $13 billion in early May. Laiki Bank, one of the country’s largest financial institutions, will be wound down, and depositors in the firm with accounts holding more than $130,000 will be subject to a heavy penalties, which have yet to be determined. Bank of Cyprus - the country’s largest bank - will take on some of Laiki’s liabilities, though depositors are not likely to face a similar tax on their accounts.
The dysfunctional way that European policymakers have tackled the crisis in Cyprus offers lessons for the rest of the Continent, according to Financial Times’ Gavyn Davis. The failure to quickly resolve the country’s financial problems shows that a banking union across the euro zone remains a distant reality.
ON THE AGENDA: Dick Costolo, chief executive of Twitter, is on Bloomberg TV at 1:00 p.m. New York Federal Reserve President William Dudley will give a speech at the Economic Club of New York at 12:30 p.m. Federal Reserve chairman Ben Bernanke will discuss what lessons can be taken from the financial crisis with outgoing Bank of England governor Mervyn King and Larry Summers at the London School of Economics at 1:15 p.m.
BANKS LOSE A LOOPHOLE Banking regulators plan to limit banks’ use of derivatives to lessen the amount of capital they need to hold. Banks like Citigroup had been buying credit default swaps on loans, letting them keep the assets while cutting their loss reserves by as much as 96 percent, Bloomberg News reports.
“The proposed changes are intended to ensure that the costs, and not just the benefits of purchased credit protection are appropriately recognized in regulatory capital,†the Basel Committee on Banking Supervision said.
F.C.C. Shift May Thwart a Murdoch Media Deal  | In weighing a bid for The Los Angeles Times, Rupert Murdoch may be forced wait even longer after Julius Genachowski, the chairman of the Federal Communications Commission, resigned last week.
NEW YORK TIMES
Schroders to Buy Cazenove Capital  | The British fund manager Schroders agreed on Monday to buy local rival Cazenove Capital for $646 million.
BLOOMBERG
Rhone Capital to Buy Bakery Unit from CSM Â |Â The Dutch company CSM has agreed to sell its bakery division to the private equity firm Rhone Capital for $1.4 billion.
BLOOMBERG
Buyers Circle M&S as Takeover Target  | As the British retailer struggles from weak clothing sales, a number of potential bidders, including a Qatari sovereign wealth fund, continue to eye Marks & Spencer as a potential takeover target.
FINANCIAL TIMES
Sinopec Buys Energy Assets  | The China Petroleum and Chemical Corp, or Sinopec, has agreed to pay $1.5 billion for oil and gas-producing assets held by its parent company.
REUTERS
Buyer Found for Blockbuster’s UK Unit  | The restructuring firm Gordon Brothers Europe has bought Blockbuster’s British division, which had recently filed for bankruptcy, for an undisclosed fee.
REUTERS
Investors Face Losses Over Spanish Banks  | The Spanish government is set to inflict heavy losses on investors at the country’s nationalized banks, as politicians hire advisers to sell down assets.
WALL STREET JOURNAL
Former Deutsche Banker Joins Arabtec Holding  | The Dubai real-estate developer has appointed former Deutsche Bank executive Shohidul Ahad-Choudhury as head of mergers and acquisitions.
BLOOMBERG
Rubenstein Defends Private Equity  | David M. Rubenstein, co-founder of the Carlyle Group, said private equity firms are not about high compensation plans for managers, but a way to make businesses more efficient.
FINANCIAL TIMES
Hedge Funds Profit From Japan’s Economy  | As Japan’s stock market has enjoyed a good start to the year, hedge funds investing in the country’s equities have returned 11.3 percent from December through February, the best three-month result on record.
BLOOMBERG
Bausch & Lomb Plans I.P.O. Â |Â Bausch & Lomb, the eye-care company, said in an I.P.O. registration filing that Warburg Pincus would continue to own a majority of the stock after the offering.
DealBook »
Jaguar Land Rover Denies Fundraising Plans  | Jaguar Land Rover has denied rumors that it plans to raise $1 billion from Chinese investors later this year.
FOX BUSINESS
Marin Stock Jumps in Trading  | Marin Software jumped 16 percent in its market debut on Friday, ending the day at $16.26. The advertising technology company had priced its initial public offering at $14.
WALL STREET JOURNAL
Hope for Palestinian Start-Ups  | The small but growing Palestinian tech scene now includes a start-up incubator and a burgeoning outsourcing industry.
TECHCRUNCH
S.E.C. Charges Belesis of John Thomas Financial with Fraud  | The Securities and Exchange Commission has charged Anastasios Belesis, founder of the independent broker John Thomas Financial, and a hedge fund manager with defrauding investors.
BLOOMBERG
Exchanges Lobby Against Regulatory Burden  | Faced with increased scrutiny from U.S. and European authorities, exchanges are turning to lobbyists to dampen down the proposed rules.
WALL STREET JOURNAL
