The Blackstone Group’s interest in Dell seems to raise more questions than it answers, especially in light of Dell’s 274-page proxy filing about the process of selling the company. Is Blackstone “really bidding for Dell Or is it part of a bizarre, high-stakes charade†Andrew Ross Sorkin asks in the DealBook column.
There is one detail that may help explain what’s going on, Mr. Sorkin says: Blackstone demanded that Dell pay its expenses to prepare a bid, up to $25 million. “Here’s what’s not in the proxy: Originally, Blackstone did not demand to be reimbursed for just out-of-pocket expenses â€" for consultants, travel and the like â€" but also sought to be able to receive payments for the time of its own executives, according to people involved in the process,†Mr. Sorkin writes. “The fact that Blackstone refused to bid unless its costs were covered by Dell â€" a highly unusual maneuver â€" just goes to show you how little confidence it has that it expects to submit a winning bid for Dell.â€
Blackstone’s plan to pursue a bid of at least $14.25 a share, more than the $13.65 offer from Michael S. Dell and Silver Lake, emerged as part of the 45-day process to encourage rival interest in the company. “For Dell’s special committee, agreeing to these bold demands from Blackstone is probably good business. If the board can keep a second bidder at the table, even if the suitor never makes a firm bid, Dell’s special committee will have insulated itself from criticism that it did not run a competitive process,†Mr. Sorkin writes. “The real question is why, despite the $25 million reimbursement guarantee, Blackstone is risking its reputation to even contemplate a deal for Dell.â€
ACKMAN’S HITS AND MISSES  | Joe Nocera writes in his column for The New York Times that the hedge fund manager William A. Ackman “is like one of those guys you used to see in a certain kind of old-fashioned comedy. On one shoulder sits an angel, encouraging his better nature. On the other sits a devil, whispering temptation.†While Mr. Ackman has been generous in philanthropy and gutsy in his bet against Herbalife, he has had less success with the retailer J.C. Penney, Mr. Nocera says. “The question is whether Ackman has learned anything.â€
WOMEN ON WALL STREET  | DealBook’s spring special section, “Women in a Man’s World,†is out on Wednesday, with articles on gender in finance. Sallie L. Krawcheck, the former executive of Bank of America and Citigroup, tells Susanne Craig that the aftermath of the financial crisis has delivered a setback to the presence of women on Wall Street. “You’re going through this horrible downturn. You’re a C.E.O. You want people who you worked with for 10 years or 20 years who you can trust,†she says. “These moves have led to more homogeneous leadership teams.†She also talks about the importance of having a sponsor, not just a mentor. Her sponsor for a time, Sanford I. Weill, formerly chief of Citigroup, “would tal to anybody and everybody about anything and everything at any time,†Ms. Krawcheck says.
Almost two decades after the “boom-boom room†lawsuit over sex harassment, women are more aware of their rights, Linda D. Friedman, a partner at Stowell & Friedman, tells Susan Antilla. But Ms. Friedman says her law firm continues to work on discrimination cases, largely behind the scenes. In Norway, a training program is responding to a law that requires 40 percent of public company boards to be made up of women. The boot camp, called Female Future, “aims to train the country’s next generation of directors,†Mark Scott writes.
ON THE AGENDA Â |Â Data on factory orders for February is out at 10 a.m. Peter R. Orszag, vice chairman of global banking at Citigroup, is on Bloomberg TV at 7 a.m. Mortimer B. Zuckerman of Boston Properties is on Bloomberg TV at 8:05 a.m. The financier Steven L. Rattner is on CNBC at 5 p.m.
QUESTIONS OVER TESLA  | Elon Musk, the chief executive of Tesla, said on Twitter that the electric carmaker was planning to announce “really exciting†news on Tuesday. Already, the stock got a lift on Monday, when Tesla said it expected “full profitability†in the first quarter under generally accepted accounting principles, after it sold more cars than expected. “Here’s what Tesla didn’t say, though: It didn’t quantify the overall size of its order book at the end of the first quarter. There’s pent-up demand for its cars right now as enthusiasts line up. As a result, the sales increase most likely came from meeting existing orders more quickly than expected,†DealBook’s Peter Eavis writes. “However, what’s crucial to the company’s fortunes is how many new orders are coming in each quarter - and that figure wasn’t released on Mondy. Nor was the amount of canceled orders, a negative development Tesla potentially faces.â€
Glencore Extends Deadline for Xstrata Takeover  | The commodities trader Glencore International announced on Tuesday that it had pushed back the completion date for its $34 billion takeover of the mining company Xstrata amid a review by Chinese authorities. DealBook »
Mergers Slowed to a Snail’s Pace in the First Quarter  | Only 8,115 deals were announced worldwide in the first quarter of 2013, the lowest number since 2003, according to data from Thomson Reuters. DealBook »
Nasdaq to Buy Electronic Bond Trading Platform for $750 Million  | The parent company of the Nasdaq stock exchange said on Tuesday that it would buy the electronic bond-trading platform eSpeed for $750 million, a fresh sign of consolidation in the industry. DealBook »
American Greetings to Be Taken Private  | American Greetings, the greeting card and “social expression†products company, said on Monday that it had agreed to be taken private by its founding family in a deal it valued at $878 million. DealBook »
Hess to Sell Russian Subsidiary for $2.1 Billion  | The Hess Corporation said on Monday that it would sell its Russian subsidiary, Samara-Nafta, to Lukoil for $2.1 billion as it continued a string of asset sales to focus its operations. DealBook »
Goldman Sets Up Fund to Invest in Risky Debt  | Goldman Sachs “registered a fund that invests in risky credit products as a publicly traded business development company, a way for the bank to avoid some regulations that would otherwise limit its activity,†Reuters reports. REUTERS
UBS Limits Disclosures Over Traders’ Dismissal  | UBS has succeeded in sealing documents concerning the dismissal of two traders in Singapore, saying they were fired for serious misconduct and that the bank was investigating the matter, Bloomberg News reports. BLOOMBERG NEWS
Chief of DBS Group Holdings Makes $7.5 Million  |Â
BLOOMBERG NEWS
For London’s Most Valuable Real Estate, Buyers Are Increasingly Foreign  | Buyers in high-end London neighborhoods like Belgravia are increasingly from places like Russia, Kazakhstan, Southeast Asia and India, The New York Times writes. “For them, London is just a stop in a peripatetic international existence that might also include New York, Moscow and Monaco.†NEW YORK TIMES
Italian Bank Falls in Morning Trading After Posting Loss  | Shares of Monte dei Paschi di Siena fell 6.7 percent in morning trading in Milan, Bloomberg News reports. BLOOMBERG NEWS
A Strong Quarter for Private Equity Exits  | In the fourth quarter of last year, private equity “exits†in the United States amounted to $57 billion, 43 percent of the annual total, according to the latest quarterly newsletter from the placement agent Triago. TRIAGO
Billabong Says Takeover Talks Are Continuing  |Â
REUTERS
Icahn Said to Buy Into Speech-Recognition Software Company  | Carl C. Icahn has taken a 9.27 percent passive stake in Nuance, a company that Apple uses for its Siri feature in iPhones, according to CNBC. CNBC
Broker Payments Under Scrutiny in Canadian Proxy Fight  | Reuters reports: “Hedge fund Jana Partners accused Canadian fertilizer company Agrium on Monday of improperly paying brokers and investment advisers for shareholder votes as Jana’s battle to shake up Agrium’s board enters its final week.†REUTERS
Auto Parts Maker Lear Agrees to Expand Board  |Â
REUTERS
I.P.O.’s Price Toward High End of Expectations  | It is “another sign of rising investor appetite for stocks,†The Wall Street Journal writes. WALL STREET JOURNAL
Taylor Morrison Sets I.P.O. Price at $20 to $22 a Share  | The home builder Taylor Morrison said on Monday that it planned to raise as much as $602 million in an initial public offering, seeking to take advantage of a nascent revival in the housing markets. DealBook »
Diller’s Aereo Plans to Expand After Court Victory  | Aereo, the start-up service that streams television stations over the Internet, backed by Barry Diller, received a favorable ruling from a federal appeals court in New York on Monday, dismaying broadcasters and setting the stage for a full-blown trial, The New York Times reports. NEW YORK TIMES
Start-Up That Serves Fashion Industry Attracts $20 Million  | Attune Consulting, which provides information technology services to fashion and lifestyle companies, raised $20 million from MAS Holdings. PRESS RELEASE
Schapiro to Join Promontory Financial  | Mary L. Schapiro, who recently stepped down as head of the Securities and Exchange Commission, is moving to the consulting firm Promontory Financial Group, The Wall Street Journal reports. “In my case, there’s no revolving door,†Ms. Schapiro told the newspaper. “I won’t ever be going back to government.†WALL STREET JOURNAL
11 Partners Leave Bingham for Sidley  | Eleven lawyers who work in Bingham McCutchen’s highly regarded securities-enforcement practice are said to be leaving the firm to join Sidley & Austin. DealBook »
Judge Declines to Approve Citigroup Settlement  | Reuters reports that a federal judge in Manhattan on Monday “signaled he will not rubber-stamp†Citigroup’s proposed $590 million settlement of a shareholder lawsuit accusing the bank of hiding tens of billions of dollars of troubled mortgage assets. REUTERS
Judge Approves the Smaller of 2 SAC Settlements  | A federal judge signed off on a $14 million settlement by a unit of SAC Capital Advisors over insider trading accusations. WALL STREET JOURNAL
In Cyprus, Bailout Sows Feelings of Betrayal  |Â
NEW YORK TIMES
In Bankrupt City, Ruling Stokes Fight Over Pensions  | The New York Times reports: “A federal bankruptcy judge ruled on Monday that the city of Stockton, Calif., was eligible for court protection from its creditors, clearing the way for a battle over whether public workers’ pensions can be cut when the city they work for goes bankrupt.†NEW YORK TIMES
Apple of Discord in China  | There are a number of theories about why official Chinese media outlets are attacking Apple. And while many Chinese commentators online are mocking the state media, the company does appear to have a problem with Beijing, Bill Bishop writes in the China Insider column. DealBook »
Apple Apologizes for Warranty Policies in China  |Â
NEW YORK TIMES
