The Deal
Wednesday, November 25, 
3:44 am

— Aug. 10, 2009 —

Cover story

The tipping point

The Smith brothers controlling Sinclair Broadcasting may be sincere about dealing with a debt problem at a closely held company, but no one really believes them. Could this be a dynasty-ending shenanigan?

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Editor's Note

Editor's letter: Nov. 16, 2009

Beneath the veneer of Wall Streeters beats the same heart, stirred by the same determinants of behavior.


Regulatory

Of politics and pay

How to fix executive compensation rules without breaking the companies.


Industry Insight

Before the honeymoon ends

Thinking differently about conflict resolution.


Judgment Call

The price of R&D

FAS 141(R): A new source of shareholder litigation against innovation-driven companies?



Table of contents

Cover Story

Lehman, Chrysler, GM: The fallout

judges in the trio of huge, crisis bankruptcies rushed the cases through to approve so-called section 363 sales. This has some lawyers worried about the future of creditors' due process rights


Deals

Scenes from the slowdown

M&A activity may have stalled during the first half of the year, but deal lawyers still had plenty to talk about.


The healthcare sector was hot in July, with two of the three largest deals of the month: Sanofi-Aventis agreed to pay Merck $4 billion for joint venture Merial, and Bristol-Myers Squibb is buying Medarex for $2.4 billion.


Despite tapping Evercore's Roger Altman and Morgan Stanley's Ruth Porat, who advised the Fed on AIG, troubled CIT still failed to secure government assistance.


Deal Diary

Tech revives with three deals

With Agilent, Amazon.com and IBM making acquisitions, there is no lack of work for technology advisers.


Deal Diary

FDIC gets creative with bank disposals

As bank failures accelerate, the FDIC has had to get creative to handle the disposals. Enter the veterans of bank failures past.


Movers and Shakers

Sticking with Nardelli

Bob Nardelli ran Chrysler for Cerberus. Now he's overseeing operations of other Cerberus portfolio companies.


Movers and Shakers

Moelis goes for the Silver

Moelis & Co. continues to expand in Europe with a goal of becoming a full service investment bank.


Movers and Shakers

Money on the vine

Quinton Jay joins Sam Bronfman's wine-focussed mezzanine fund Bacchus Capital.


Regulatory

Alpha male eats crow

Geithner yells at bank regulators, but they keep opposing the administration's overhaul plans anyway.


Dealmakers

Morphing models

A conversation with former Pfizer, now University of California, San Francisco, biotech veteran Corey Goodman.


Bankruptcy

Self-starter stops

As Arcandor's self-administration unravels, does debtor-in-possession bankruptcy have a future in Germany? One expert says that because of the Arcandor failure, such cases will become even more rare.


View from the City

A modest proposal

PE firms are marketing their portfolio company IPOs to raise cash, not create a profitable exit. Will investors bite?


Capital Calls

Where have all the secondaries gone?

Many predicted a booming market in LP private equity assets. It hasn't happened — yet.


Dealmakers

Diligence squared

In a buyer's market, scrutiny of both risks and business basics is at an all-time high. That can mean deeper looks into everything from customer and supplier relationships to the provenance of key patents.


Venture Capital

Payback time

Amid unprecedented turmoil in venture portfolios, one cash-rich startup buys out its VC backer.


Follow the Money

One pocket to the next

In a complex maneuver, KKR wipes out debt in three CLO funds to improve liquidity and help itself.


Arbitrage

Risk arbitrage: Aug. 10, 2009

Oracle's proposed $7.4 billion acquisition of Sun is on track for summer close; Addax Petroleum's $8.5 billion purchase by Sinopec also nears close and more.


Editor's Note

Editor's note: Aug. 10, 2009

Wall Street is a living embodiment of what Joseph Schumpeter famously called creative destruction.


Deals

An overflowing punch bowl: 2006

Euphoria produced anxieties as the flood of liquidity spawned a variety of new life forms, many of them crawled from the stuffed-to-the-gills hedge fund world.


Media Maneuvers

Finance for dummies

Aggressive and unrepentant ignorance seems to be the order of the day. If you don't know what the Fed does, how can you blame it for anything?


Backstory

Measure for measure

Things may look dire out there for media properties supported by advertising. But Veronis Suhler is upbeat.


Safe Harbor

Goodbye to all that

Regardless of when law firms recover, associates will feel the impact of the recession for a long time to come. Morgan, Lewis & Bockius has recently canceled its 2010 summer associates program and has said it would put an end to lockstep compensation for associates.


Rules of the Road

One annoying sweetheart

The FTC tries finally to end Generics' pay-for-delay Deals with branded pharma. But will it survive the healthcare reform?


Bankruptcy

Money never sleeps

A down market is often the best time to acquire a business, snap up strategic assets, or simply recapitalize or restructure for the future


Industry Insight

The price is right?

Consumer prices have risen for two consecutive months and commodity prices may also increase.


Judgment Call

Just the FAQs

An amendment to the German Foreign Trade Act authorizes the federal government to prohibit certain foreign investors from buying stakes of 25% or more in German companies if such acquisition would endanger 'public order' or 'public security.'


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