BP Strikes a Deal in Russia

BP REACHES DEAL WITH ROSNEFT  |  BP announced on Monday that it had reached a deal with Rosneft, the Russian state oil company, to sell its 50 percent stake in the Russian joint venture TNK-BP. Under the agreement, BP would receive Rosneft shares and $17.1 billion in cash, and would ultimately hold a 19.75 percent stake in Rosneft. BP said it expected to gain two seats on Rosneft's board.

 

GREG SMITH SPEAKS  |  The time has come for Greg Smith to promote his book, “Why I Left Goldman Sachs: A Wall Street Story,” which goes on sale on Monday. The debate over the book has focused on its author as much as on the firm he writes about. Much hinges on the “believability” of Mr. Smith's story, writes DealBook's Susanne Craig, who says the book “does lay bare at least one man's view of how the firm's culture went haywire over the last decade.” Goldman itself is mounting a public challenge to Mr. Smith, telling its employees that his “perspective was limited.”

But Mr. Smith sees his book as “constructive,” he said on “60 Minutes” on Sunday. “There are a lot of people who acknowledge things internally,” he said. “But no one is willing to say it publicly. And my view was the only way you force people to change the system is by saying something publicly.” He also responded to insinuations that personal setbacks at work were a factor in his decision to criticize the firm, telling New York magazine: “Would I have liked to have been promoted? Absolutely. But was I in line to get promoted at age 33? Probably not.” (His media tour even included a Ping-Pong match arranged by Fortune.)

Still, there are “potential problems with Mr. Smith's approach,” writes James B. Stewart in his column in The New York Time s. The book is short on details to back up the sweeping accusations and “might even bolster Goldman's reputation.” Mr. Stewart spoke to some of the people who apparently were represented in the book - including Teddy Schwarzman, son of Stephen A. Schwarzman of the Blackstone Group - and found inconsistencies with Mr. Smith's version of events. Another former Goldman Sachs employee, Matt Levine, who is now a blogger for Dealbreaker, writes in The Wall Street Journal that much of Mr. Smith's argument “involves rehearsing scandals already litigated in court and the public square - without the benefit of new insights or inside knowledge.”

 

ON THE AGENDA  |  Marissa Mayer holds her first earnings call as Yahoo‘s chief executive on Monday, when the company announces quarterly results after the market closes. Analysts are expecting net income of 24 cents a share, up from th e quarter a year earlier. Caterpillar reports earnings before the opening bell, and Texas Instruments reports Monday evening. Facebook reports its earnings on Tuesday, and The Wall Street Journal's Heard on the Street column writes that there may be cause for optimism. Marc Bodnick, a founder of Silver Lake Partners, is on CNBC at 11 a.m. Robert S. Kapito, president of BlackRock, is on CNBC at 1 p.m. Robert Wolf, a former UBS executive who left the firm to start 32 Advisors, is on CNBC at 7 p.m.

 

ANCESTRY.COM IN $1.6 BILLION BUYOUT  |  A group led by the private equity firm Permira has agreed to buy Ancestry.com, the genealogy Web site, for $32 a share, a 40 percent premium to the company's share price in June when the potential deal was first reported. One of Permira's partners in the deal is Spectrum Equity, a venture capital firm that was one of Ancestry.com's early backers , DealBook says.

 

ARCHER DANIELS OFFERS $2.8 BILLION FOR RIVAL  |  The American agricultural giant Archer Daniels Midland is looking to buy GrainCorp of Australia for $2.76 billion as A.D.M. tries to expand overseas, DealBook reports. The offer is 33 percent above GrainCorp's closing price on Friday.

 

A.I.G.'S BENMOSCHE ON THE BAILOUT  |  Robert H. Benmosche, chief executive of the American International group, sat down with New York magazine for an interview in his villa in Croatia. Talk turned to the Treasury and the Federal Reserve, which bailed out the insurer during the financial crisis. “And do you know,” Mr. Benmosche told the magazine, “neither of them have ever said ‘Thank you'? We have done all the right things. Somebody should say, ‘By golly, those A.I.G. pe ople made a promise and they are living up to a promise!'”

 

 

Mergers & Acquisitions '

Canadian Official Says Energy Deal Still Possible  |  Over the weekend, Canada blocked a $5.2 billion takeover of Progress Energy Resources by Petronas of Malaysia. But the government still might approve the deal, according to the country's finance minister, who said negotiations were continuing, Reuters reports. REUTERS

 

Credit Suisse Said to Put European E.T.F. Unit on the Block  |  Credit Suisse's $17.2 billion exchange-traded fund business in Europe has attracted bids from BlackRock and State Street Global Advisors, Reuters reports, citing unidentified people familiar with the matter. REUTERS

 

Philippine Firm San Miguel Hopes for $5 Billion Deal  |  The San Miguel Corporation of the Philippines, a brewer-turned-conglomerate, is in the running for an unspecified transaction that could be worth $5 billion, the company's president told reporters on Saturday, according to Bloomberg News. DealBook '

 

Xstrata's Chief Sticks Up for Board  |  Mick Davis, the chief executive of Xstrata, told The Financial Times that the mining company's board had “been unfairly disparaged because they have done a good job in difficult circumstances.” FINANCIAL TIMES

 

Deal Gives Lonestar a Listing in Australia  | 
WALL STREET JOURNAL

 

INVESTMENT BANKING '

Citigroup Distances Itself From Hedge Funds  |  In a plan made before Michael L. Corbat replaced Vikram S. Pandit as chief executive, Citigroup is moving a group of internal hedge funds to an entity controlled by bank executives, Bloomberg News reports. The deal could help the bank comply with the Volcker Rule. BLOOMBERG NEWS

 

Will Citigroup Shrink Under Its New C.E.O.?  |  Gretchen Morgenson writes in her column in The New York Times that Michael L. Corbat, Citigroup's new chief executive, “must put this institution on a stronger financial footing, but it would be even better if he downsized it so it is no lo nger too big to succeed.” NEW YORK TIMES

 

Lloyds Bank Said to Weigh Overhaul of Bonuses  |  The British bank is “examining whether to ditch the concept of annual bonuses for senior staff and extend the time frame of longer-term incentives to up to 10 years, according to people briefed on a project to overhaul remuneration,” The Financial Times reports. FINANCIAL TIMES

 

Goldman Sachs's Commercial Bank to Open London Branch  | 
FINANCIAL TIMES

 

Disappointing Earnings Weigh on Stocks  |  Friday's sell-off was the worst in nearly four months, The New York Times reports. NEW YORK TIMES

 

PRIVATE EQUITY '

What's Behind the Rise in Dividends for Private Equity  |  With the I.P.O. market weak, and with bond investors willing to buy risky debt, buyout firms are turning to so-called dividend recapitalizations, The Wall Street Journal writes. WALL STREET JOURNAL

 

British Law Firms Shun Private Equity  |  Reuters reports: “British law firms are unlikely to sell to private equity investors, a survey said on Monday, dealing a blow to the buyout firms that are searching for deals in the sector.” REUTERS

 

HEDGE FUNDS '

Ackman Sticks to a Bet on Hong Kong Dollar  |  Bloomberg News writes: “Hong Kong's determination to maintain its exchange-rate peg to the U.S. dollar has the confidence of currency-forward traders even as it fails to sway hedge fund investor William Ackman.” BLOOMBERG NEWS

 

Busy Market for MF Global Bankruptcy Claims  |  According to SecondMarket, there was a higher trading volume in MF Global bankruptcy claims than in Lehman Brothers claims in September, The Financial Times reports. FINANCIAL TIMES

 

Twilight of the Star Traders  |  The departure of Greg Coffey from Moore Capital may signal a broader trend, The Guardian writes. GUARDIAN < /span>

 

I.P.O./OFFERINGS '

MegaFon Delays Marketing of Proposed I.P.O.  |  One of Russia's largest cellphone companies, MegaFon, has postponed the marketing campaign for an initial public offering that it hopes to complete by the end of the year. DealBook '

 

Facebook Investigation Finds No Wrongdoing  |  Bloomberg News reports that the Securities and Exchange Commission's investigation into Facebook “hasn't found evidence that the company withheld material information from investors, a person familiar with the matter said.” BLOOMBERG NEWS

 

VENTURE CAPITAL '

A $2.5 Billion Valuation for Airbnb?  |  Peter Thiel, the entrepreneur and venture capitalist, is negotiating a roughly $150 million investment in Airbnb, a start-up that enables people to rent out their homes through its online service, The Wall Street Journal reports. WALL STREET JOURNAL

 

A Bank for Tech Entrepreneurs  |  Silicon Valley Bank caters to young technology companies and winemakers, and sometimes uses its venture capital division to invest in its clients, Fortunes writes. FORTUNE

 

LEGAL/REGULATORY '

A Secretary to a Salomon Is Accused of Embezzling  |  The secretary for William R. Salomon, former head of Salomon Brothers, has been accused of stealing nearly $2 million from her 98-year-old boss. DealBook '

 

Germany Dampens Hopes of Direct Aid for Banks  |  If Chancellor Angela Merkel of Germany gets her way, European rescue loans for banks in Ireland and Spain would be carried on those countries' books, The New York Times reports. NEW YORK TIMES

 

Goldman Loses Bid to Dismiss Investor Lawsuit  |  The firm had sought to dismiss a $1.07 billion lawsuit by an Australian hedge fund accusing Goldman Sachs of misrepresenting a risky investment. REUTERS

 

Romer on the Stimulus  |  Christina D. Romer, former chairwoman of President Obama's Council of Economic Advisers, writes in a column in The New York Times: “Though the Recovery Act appears to have had many benefits, it could have been more effective.” NEW YORK TIMES

 

Former Federal Prosecutor to Join Skadden  |  Patrick Fitzgerald, a former United States attorney in Chicago, is joining Skadden, Arps, Slate, Meagher & Flom as a partner, The Wall Street Journal reports. WALL STREET JOURNAL

 

Law Firms Face Increased Resistance on Fees  | 
WALL STREET JOURNAL