Friday, June 29, 2012

Reuters: Private Equity: UPDATE 1-Blackstone nears $13 bln real estate fund target-sources

Reuters: Private Equity
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UPDATE 1-Blackstone nears $13 bln real estate fund target-sources
Jun 29th 2012, 18:08

Fri Jun 29, 2012 2:08pm EDT

By Greg Roumeliotis and Ilaina Jonas

NEW YORK, June 29 (Reuters) - Blackstone Group LP has raised more than $12 billion for its latest real estate fund, its biggest yet, putting it within reach of its $13 billion fundraising target, two people familiar with the matter said on Friday.

Blackstone declined to comment.

The fund, Blackstone Real Estate Partners VII, is the largest buyout fund by capital targeted globally, according to market research firm Preqin. It has proved to be one of the private equity firm's most popular offerings with investors.

"This sticks out as being a really successful fundraise in a market that has been struggling for the past few years. It does show that investors are very keen on having access to Blackstone" said Preqin spokesman Tim Friedman.

Blackstone's real estate arm is active in nearly every major sector of commercial real estate, owning offices, warehouse and distribution centers, shopping centers and hotels. It has been able to capitalize on limited supply and slowly increasing demand for commercial space in the United States and benefit from occupancy improvement and rent growth.

The firm took four years to raise over $16 billion for its last global private equity fund, Blackstone Capital Partners VI, which closed in January. In contrast, Blackstone Real Estate Partners VII launched just over a year ago, in April 2011.

Real estate contributed $1 billion toward Blackstone's reported 2011 economic net income of $1.4 billion, a measure of the firm's profitability. This is despite real estate making up just a quarter of the firm's $166 billion assets under management as of Dec. 31.

Blackstone said in April it now managed over $48 billion in real estate assets, up nearly 40 percent from the prior year.

The firm clinched last year's biggest buyout thanks to its real estate arm, when it bought 600 U.S. shopping malls from Centro for $9.4 billion. Centro, one of Australia's high-profile victims of the 2008 global financial crisis, had run up a heavy debt load with an ill-timed expansion into the United States.

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Reuters: Private Equity: UPDATE 1-Renesas to sell 10 plants, cut 30 pct jobs - Nikkei

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UPDATE 1-Renesas to sell 10 plants, cut 30 pct jobs - Nikkei
Jun 29th 2012, 18:13

June 30 | Fri Jun 29, 2012 2:13pm EDT

June 30 (Reuters) - Japanese chipmaker Renesas Electronics Corp will sell or shut down nearly half of its domestic fabrication plants, and cut 30 percent of its workforce, the Nikkei business daily said.

Renesas is in talks to sell its main fab for system chips in Yamagata Prefecture to Taiwan Semiconductor Manufacturing Co , and a factory in the Aomori Prefecture to Fuji Electric Co, the daily said.

The process is expected to take a year or two, Nikkei said, adding that the company plans to cut about 14,000 jobs and take a related charge of almost 100 billion yen ($1.25 billion).

Renesas, the world's fifth-largest microchip manufacturer and a product of successive mergers with Hitachi Ltd, Mitsubishi Electric and NEC Corp, has been struggling in the face of increased overseas competition as it tries to revive its system chip business.

These shareholders and four banks have already agreed to provide Renesas 100 billion yen in help, mostly in the form of loans, Nikkei said.

The company is also in talks with U.S. investment fund Kohlberg Kravis Roberts & Co to raise another 50 billion yen ($626.64 million) in capital.

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Reuters: Private Equity: RLPC-EMEA lending down 34 pct at the half year

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RLPC-EMEA lending down 34 pct at the half year
Jun 29th 2012, 17:00

Fri Jun 29, 2012 1:00pm EDT

* Lending in the doldrums as companies shun debt

* Second quarter busier but first half down overall

* Leveraged loans feel the impact of eurozone crisis

By Tessa Walsh

LONDON, June 29 (Reuters) - Syndicated lending in Europe, the Middle East and Africa (EMEA) slumped 34 percent to $343 billion in the first six months of 2012 to 2003 levels as eurozone turbulence put companies off borrowing, Thomson Reuters LPC data shows.

Loan volume and deal flow have been crushed as deleveraging banks moved to increase tier 1 capital ratios under pressure from regulators and companies have been deterred by weak debt markets as the eurozone crisis intensified.

Falling dealflow raised fears of overstaffing and possible headcount reduction as income remains under pressure. Only 519 deals were completed in the first six months, 32 percent lower than the same period of 2011.

Although second quarter volume of $187 billion was 20 percent higher than $155 billion in the first quarter, it is still 34 percent lower than the second quarter of 2011.

Lending rose across the region in the second quarter in all areas other than the Middle East. The biggest pick up in activity was seen in Central and Eastern Europe.

Banks had money to lend to key clients, but the main issue facing the market was the lack of activity as companies remained wary of new loans and mergers and acquisitions (M&A) activity remained depressed in volatile markets.

"The second quarter was disappointing because of the lack of deals and activity and low levels of M&A," Kristian Orssten, managing director and head of JP Morgan's European loan and high-yield capital markets group said.

Despite a dramatic macroeconomic backdrop as Spain's banking sector sought a bailout before the Greek elections in late June and ratings agencies' mass bank downgrades, the loan market remained open for business.

The market even managed to syndicate some large loans from peripheral Europe despite the turbulence as sovereign borrowing costs blew out.

The largest loan of the quarter was a 30 billion euro loan for Spain's Fund for the Payment of Creditors (FFPP) that will be used to refinance local and regional governments and repay creditors. The five-year loan was guaranteed by the Spanish Treasury and through local authorities share of state income.

The transaction propelled BBVA to the top of the loan bookruner tables with $12.35 billion of loans and a 5.4% market share and put Santander in third place after Credit Agricole.

An 11 billion euro loan was also syndicated for Italian gas operator Snam to fund its separation from Eni and the repayment of debt to the oil and gas giant.

A total of $227 billion of loans were raised for highly-rated companies in the first half, more than double the $111 billion of corporate loans raised as bond activity slowed.

In the second quarter, $133 billion of corporate loans were raised, compared to $36 billion of corporate bonds.

The largest investment-grade loan of the quarter was a $7.8 billion loan backing Gaz de France's acquisition of International Power.

Investment-grade lending picked up 40 percent in the second quarter from the first. High-grade M&A activity rose 53 percent to $15.4 billion, although refinancing volume fell to $54.73 billion in the second quarter from $78.5 billion in the first quarter.

LEVERAGED SLOWS The European leveraged loan market which banks riskier, more indebted companies felt the main impact of the eurozone crisis. First half leveraged loan volume of $57.18 billion was 29 percent lower than the first half of 2011.

Activity continued to slow as investors became increasingly risk conscious. Second quarter volume of $21 billion was 42 percent lower than the first three months.

Leveraged loans outstripped high-yield bonds at the half-year, which saw $37.6 billion of bonds, and also in the second quarter, when only $8.37 billion of high-yield bonds were logged after that market closed.

The largest leveraged loan of the quarter was the $1.6 billion loan for French clothing retailer Vivarte as larger leveraged companies continued to amend their loan facilities and extend maturities.

Towards the end of June, deteriorating sentiment took a toll on the syndication of new buyouts for tax free shopping business Global Blue and French eyeglasses maker Alain Afflelou.

Discounts were added to sell the loans before the summer holiday period, in a bid to avoid last year's expensive post-summer pile up.

The move made underwriters more nervous about underwriting new deals over the summer as investors moved into a more defensive mode.

"Investors are very focussed on credit. They are ultra cautious and worried about price risk " a senior syndicator said.

(Reporting by Tessa Walsh)

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Reuters: Private Equity: Blackstone nears $13-bln real estate fund target-sources

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Blackstone nears $13-bln real estate fund target-sources
Jun 29th 2012, 17:12

NEW YORK, June 29 | Fri Jun 29, 2012 1:12pm EDT

NEW YORK, June 29 (Reuters) - Blackstone Group LP has raised more than $12 billion for its latest real estate fund, putting it within reach of its $13-billion fundraising target, two people familiar with the matter said on Friday.

Blackstone declined to comment.

The fund, Blackstone Real Estate Partners VII, is the largest buyout fund by capital targeted globally, according to market research firm Preqin.

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Reuters: Private Equity: Sony group wins U.S. approval to buy EMI music publishing

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Sony group wins U.S. approval to buy EMI music publishing
Jun 29th 2012, 14:37

WASHINGTON, June 29 | Fri Jun 29, 2012 10:37am EDT

WASHINGTON, June 29 (Reuters) - The Federal Trade Commission has approved a Sony-led consortium's purchase of EMI Music Publishing, without having to make any divestitures, the FTC said on Friday.

U.S. antitrust regulators gave the nod to the $2.2 billion deal in a brief letter to the companies.

The agency is expected to issue a decision in coming months on a related and more controversial deal -- Universal Music's plan to buy EMI's recorded music catalog from Citigroup Inc for $1.9 billion.

In its letter, the FTC said that it had been looking at the transaction but upon review found no reason for further action.

"Accordingly, the investigation has been closed," the FTC said in its letter to Sony Corp .

European antitrust regulators gave Sony approval to close its purchase of the EMI unit in April on condition it sell the worldwide publishing rights of artists, including Robbie Williams and Lenny Kravitz.

The consortium proposed a deal with Europe regulators in which they would sell the assets to satisfy concerns that the deal would break antitrust law.

Other assets to be sold are Virgin UK, Virgin Europe, Virgin U.S. and Famous Music UK, and include artists such as Gary Barlow, Ozzy Osbourne, Ben Harper, Placebo and The Kooks.

Sony, with Blackstone Group LP, Abu Dhabi's Mubadala Development Co, Raine Group and music and film mogul David Geffen, won the bidding for EMI Publishing last year in a deal that will put Sony on top in global music publishing.

Before the deal, Sony was the fourth biggest player in music publishing, behind Vivendi's Universal Music Group, EMI and Warner Music.

The agreement will push it into first place, owning the rights to about 3 million songs, such as "New York, New York" and Adele's recent smash "Rolling in the Deep".

Citigroup is selling EMI after taking over the group when its previous owner, private equity group Terra Firma, defaulted on borrowings from the investment bank.

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Reuters: Private Equity: UPDATE 1-First Solar names COO

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UPDATE 1-First Solar names COO
Jun 29th 2012, 13:32

June 29 | Fri Jun 29, 2012 9:32am EDT

June 29 (Reuters) - First Solar Inc named a former private equity venture partner to the newly created position of chief operating officer, at a time when solar financing has dried up.

Georges Antoun, who most recently worked at private equity firm Technology Crossover Ventures, joins a company that in the last few months has appointed a new CEO, cut 30 percent of its workforce and posted a surprise first-quarter loss.

Solar panel maker First Solar's shares have fallen 88 percent in the last one year, a period that saw other solar companies such as U.S.-based Solyndra and Germany's Q-Cells SE going bust due to falling government subsidies and product oversupply.

South Korean group Hanwha may buy insolvent Q-Cells, once the world's largest maker of solar cells, a spokesman for Hanwha Corp said on Friday.

Shares of First Solar rose 4 percent to $15.33 in early trading on Friday on the Nasdaq.

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Reuters: Private Equity: Canadian Pacific names Hunter Harrison CEO

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Canadian Pacific names Hunter Harrison CEO
Jun 29th 2012, 11:05

June 29 | Fri Jun 29, 2012 7:05am EDT

June 29 (Reuters) - Canadian Pacific Railway named Hunter Harrison as chief executive, months after the company's top shareholder pitched for the former CEO of rival Canadian National Railway.

In May, former Chief Executive Fred Green and Chairman John Cleghorn both quit after a boardroom coup, following a proxy battle with New York activist shareholder William Ackman and his company Pershing Square Capital Management.

Ackman, who is CP's biggest shareholder with a 14.1 percent stake, wanted to replace Green with Harrison.

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Reuters: Private Equity: UPDATE 1-Canadian Pacific names Hunter Harrison CEO

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UPDATE 1-Canadian Pacific names Hunter Harrison CEO
Jun 29th 2012, 11:47

June 29 | Fri Jun 29, 2012 7:47am EDT

June 29 (Reuters) - Canadian Pacific Railway Ltd , Canada's second-biggest railroad, named Hunter Harrison as chief executive, months after its top shareholder pitched for the former CEO of rival Canadian National Railway Co.

Activist investor William Ackman's Pershing Square Capital Management, CP's biggest shareholder with a 14.1 percent stake, had been seeking to replace Fred Green with Harrison to help improve CP's worst-in-class operating efficiency.

Green and Chairman John Cleghorn quit in May, after which the company started a CEO selection process. The company elected Paul Haggis chairman earlier this month.

CP's operating ratio, a key measure of railroad performance, has lagged CN's since the mid-1990s. In the first quarter, CP's operating ratio was 80.1 percent, while CN's was 66.2 percent.

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Reuters: Private Equity: Deals of the day -- mergers and acquisitions

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Deals of the day -- mergers and acquisitions
Jun 29th 2012, 10:44

June 29 | Fri Jun 29, 2012 6:44am EDT

June 29 (Reuters) - The following bids, mergers, acquisitions and disposals involving European, Canadian, U.S. and Asian companies were reported by 1030 GMT on Friday:

** Anheuser-Busch InBev SA, the world's biggest brewer, will swallow the half of Grupo Modelo it does not already own for $20.1 billion in the latest in a string of deals by big brewers looking for growth in emerging markets.

** British buyout group Melrose said it had agreed to buy German utility-meter maker Elster Group for $2.3 billion in its first major deal for four years.

** U.S. drinks group Constellation Brands Inc will buy the remaining 50 percent interest in Crown Imports that it did not already own from Anheuser-Busch InBev SA for $1.85 billion following a move by the world's largest brewer to buy Mexican brewer Grupo Modelo.

** Australia's No.2 department store chain David Jones Ltd said it had received an unsolicited $1.65 billion bid from a consortium led by Britain's EB Private Equity - a firm it did not know much about and was unknown to many market players.

** French retailer Casino agreed to pay 1.175 billion euros ($1.46 billion) for the half of Monoprix it did not already own, calling a truce with department store owner Galeries Lafayette, its partner in the joint-venture.

** Dairy Crest Group Plc said it received a 430 million euros ($534.34 million) binding offer from Montagu Private Equity SAS for its St Hubert French branded spreads business.

** Chinese wire maker Fushi Copperweld Inc said late Thursday it has agreed to be taken private by a group led by its co-chief executive, in a deal valuing the company at about $364 million.

Co-CEO Li Fu and private equity firm Abax Global Capital will pay Fushi shareholders $9.50 per share in cash.

** Poland is still opposed to Acron's bid for the country's No.1 chemicals maker Azoty Tarnow, despite the Russian group's readiness to raise its 1.5 billion zloty ($434 million) offer, a deputy treasury minister said.

** China has sought an extra month to review Hanlong Mining's A$1.34 billion bid for Sundance Resources Ltd.

Sundance said it had agreed to extend the deadline for China's National Development and Reform Commission to approve the takeover to July 31 to give it time to review the terms agreed with Cameroon on developing the $4.7 billion Mbalam iron ore project.

** Private equity firm Bain Capital is in exclusive talks to buy Italian auto-parts distributor Rhiag from Alpha Associes in what could be the first Italian leveraged buyout (LBO) in more than a year, people close to the transaction said.

** South Korea's LG International has dropped its bid for the Wilkie Creek coal mine in Australia owned by U.S. miner Peabody Energy Corp.

Peabody decided late last year to sell the mine, valued at around $500 million, as it aimed to focus instead on the assets it acquired with its $5 billion takeover of Macarthur Coal in Australia.

** German unlisted optical technology group Carl Zeiss AG is in talks to sell its defence business to EADS's Cassidian unit, Financial Times Deutschland reported, citing industry sources.

** EU regulators are to step up their probe into a bid by Hong Kong's Hutchison 3G to buy France Telecom's Orange Austria on concerns that the 1.3 billion euros ($1.62 billion) deal would shrink the number of players in Austria to three.

Hutchison, a unit of Hutchison Whampoa, unveiled the takeover plan in February.

** At least two South Korean firms said they had entered bids to acquire a stake in water purifier manufacturer Woongjin Coway.

GS Retail Co Ltd said in a regulatory filing it had submitted a bid, while a spokesperson for Lotte Group said Lotte had also entered a bid.

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Reuters: Private Equity: RLPC-Bain in exclusive talks to buy Rhiag-sources

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RLPC-Bain in exclusive talks to buy Rhiag-sources
Jun 29th 2012, 10:03

By Isabell Witt

LONDON, June 29 | Fri Jun 29, 2012 6:03am EDT

LONDON, June 29 (Reuters) - Private equity firm Bain Capital is in exclusive talks to buy Italian auto-parts distributor Rhiag from Alpha Associes in what could be the first Italian leveraged buyout (LBO) in more than a year, people close to the transaction said on Friday.

The sale could value Rhiag at over 500 million euros ($621 million) or over 6.25 times the company's roughly 80 million euros of earnings, the people said.

Bain declined to comment, while Alpha could not immediately be reached for comment.

The deal could be financed with debt of over 240 million euros or over 3 times earnings, provided by a club of European banks. However, banks have not yet underwritten the debt due to concerns about financing an LBO in Italy or other peripheral European countries, where a sovereign debt crisis has sapped dealmaking, the people added.

The last LBO in Italy was signed in May 2011 when BC Partners acquired Italian clothing retailer Gruppo Coin for 930 million euros.

Rhiag, which also generates revenues outside Italy, tried to list on the stock exchange in May 2011, but the initial public offering was pulled due to adverse market conditions. The IPO had valued the company at between 326.5 million and 398 million euros.

Alpha acquired Rhiag in a 2007 buyout. The deal was financed with 255 million euros of debt, provided by ING, Natixis, GE and IKB, according to Thomson Reuters LPC data.

($1 = 0.8047 euros) (Reporting by Isabell Witt; Editing by Mark Potter)

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Reuters: Private Equity: Russia's Alfa says it has $1.5bln in Pamplona

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Russia's Alfa says it has $1.5bln in Pamplona
Jun 29th 2012, 10:44

Fri Jun 29, 2012 6:44am EDT

* Alfa was a cornerstone investor in Pamplona

* Pamplona recently invested in Italy's Unicredit

* Alfa's stake in Pamplona funds was $1.5 bln at start of year

By Megan Davies

MOSCOW, June 29 (Reuters) - The investment group which this week raised its stake in Italian bank Unicredit to 5 percent is a quarter funded by billionaire Mikhail Fridman's Alfa Group, according to the Russian conglomerate.

Alfa Group has about $1.5 billion invested in a number of funds run by private equity and hedge fund Pamplona, Alfa said on Friday.

Russia's Alfa Group, chaired by Soviet-born Fridman, was a cornerstone investor in London-based Pamplona, which has $6 billion under management, according to its website.

Fridman, who amassed wealth and political influence under former Russian President Boris Yeltsin in the 1990s, has a fortune estimated by Forbes magazine at $13 billion.

His Alfa Group owns a 25 percent stake in TNK-BP, a near 25 percent voting stake in mobile firm Vimpelcom, and just under 50 percent in leading food retailer X5. Fridman also owns 36 percent of Alfa Bank.

Alfa said in a statement on its website that as of Jan. 1 it had about $1.5 billion invested in various of Pamplona's funds, which include Pamplona Global Financial Institutions Fund which has taken a 5 percent stake in Unicredit.

Alfa said it did not have an ownership interest in Pamplona itself, and investment decisions relating to the funds were taken by Pamplona.

The stake in Unicredit was worth about 750 million euros ($935.33 million) and is one of the largest investments by a foreign operator in a listed Italian group this year.

Pamplona - headed by Alex Knaster, a former Alfa Bank Chief Executive - already owned just under 2 percent of UniCredit, a stake too small to be made public under Italian disclosure rules.

It has now added another 3 percent.

Knaster sits on the board of several companies in the Alfa Group, according to Pamplona's website.

Alfa Group is owned by Mikhail Fridman together with two long-time business partners German Khan and Alexey Kousmichoff, according to the group's website.

Shares of Unicredit were 5.4 percent higher at 2.75 euros at 1041 GMT.

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Reuters: Private Equity: RPT-FEATURE-U.S. 'Genius' visa attracts entrepreneurs and Playmates

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RPT-FEATURE-U.S. 'Genius' visa attracts entrepreneurs and Playmates
Jun 29th 2012, 11:00

Fri Jun 29, 2012 7:00am EDT

By Sarah McBride

SAN FRANCISCO, June 29 (Reuters) - Shera Bechard, the Canadian-born former girlfriend of Playboy Enterprises founder Hugh Hefner, would not be an obvious candidate for the special visas that the U.S. government reserves for "individuals with extraordinary ability."

Playboy magazine named Bechard Miss November in 2010, and she also started an online photo-sharing craze called "Frisky Friday." Neither seems quite on the level of an "internationally recognized award, such as a Nobel Prize," which the government cites as a possible qualification.

But Los Angeles immigration lawyer Chris Wright argued that Bechard's accomplishments earned her a slot. The government ultimately agreed.

That kind of success has put Wright on the map as the go-to visa fixer for both Hollywood and Silicon Valley. It also highlights the use of so-called genius visas known as O-1s and EB-1s, which have largely escaped political controversy and are now the immigration solution of choice for many entrepreneurs.

As many immigration lawyers see it, the paucity of immigration options for the most entrepreneurial foreigners mean they must use any avenue they can. This approach, along with seeming flexibility in Washington on what constitutes "extraordinary ability," means the O-1 is gaining traction in technology circles. Wider use could ultimately land it in political trouble.

For example, the H-1B visa, which allows employers to hire foreigners temporarily in certain specialized fields like technology, has drawn accusations from union groups and others that companies use it to bring in lower-skilled labor.

The O-1 visa allows individuals of "extraordinary ability" to come to the United States for up to three years, and can be extended. British journalist Piers Morgan used one when he replaced Larry King on his late-night TV show, Wright said.

The EB-1 is similar, but leads to a green card and permanent residency rather than a temporary stay, with "extraordinary ability" being one of the ways to qualify - along with being an outstanding professor or researcher, or a multinational executive.

Foreign entrepreneurs have another option - the Immigrant Investor Program, or EB-5 visa - but it requires a capital investment of at least $500,000 and the creation of at least 10 full-time jobs for U.S. workers.

By contrast, no proof of personal wealth or investment in the United States is required for the O-1 or the EB-1.

There is also no cap on the number of O-1s that the government can award each year; about 12,280 were approved in 2011, U.S. Citizenship and Immigration Services said, up from 9,478 in 2006. It issued about 25,000 EB-1s last year, below their cap of 40,000.

The H-1B is much more popular. Applications hit their annual cap of 85,000 earlier this month.

FALLBACK POSITION

While high-profile artists and entertainers have long used the O-1s, they are now becoming a fallback for businessmen and technologists who cannot get H1-Bs.

Josh Buckley, a 20-year-old British-born entrepreneur and a client of Wright's, is among the new crop of Internet entrepreneurs to win an O-1 visa. He applied after starting a few small companies, including one he sold at age 15 for a sum reaching the low six figures, he says.

He got his O-1 last year after lining up letters of recommendation from luminaries including Netscape co-founder and venture capitalist Marc Andreessen and Apple Inc co-founder Steve Wozniak.

Buckley, whose MinoMonsters gaming company is backed by Andreessen, saw little choice other than the O-1. The H-1B was off limits because it usually does not go to people who work for themselves. The O-1, unlike most H-1Bs, also does not require a college education--a key feature for the ever-younger entrepreneurs flocking to Silicon Valley.

Except when it comes to the O-1, visa officials "just don't understand the concept of someone being skilled without 12 years of experience or a bachelor's degree," says John Collison, a 22-year-old Irishman. He dropped out of Harvard University to work on Stripe, the payments company he co-founded with his brother, Patrick.

Like Buckley, he met Wright through the prestigious Silicon Valley start-up incubator known as Y Combinator. He won his O-1 in December 2010 and now has permanent residency status-- as does Buckley.

Wright, himself a South African immigrant, dismisses the notion that some of his clients might not rise to the level of "extraordinary ability."

"There's nothing in those regulations that requires you to be a genius," he says. "It's quite condescending to say, 'Oh, the idiot Playboy Playmates, they don't qualify.'"

At the end of 2010, Bechard posted the first "Frisky Friday" photo on the Twitter microblogging service. Now young women all over the world tweet scantily-clad pictures of themselves on Fridays, with Playboy selecting a weekly winner.

Immigration officials "want to give (a visa) to someone who shows business skills," Bechard says. She also threw in such qualifications as her role as a mute Russian in a 2009 movie, "Sweet Karma," which won her a best actress award at the cult Fantastic Film Festival in Austin, Texas.

QUALIFICATION QUESTION

Many of Wright's young technology clients have had limited time to show they have "risen to the very top of the field of endeavor," as O-1 regulations state.

But quality rather than longevity is the key, Wright says. USCIS rules require extraordinary ability -- demonstrated by "sustained national or international acclaim" -- that he says his clients can prove with awards and testaments from leading players in their field.

The visas are "a lot of work," he said. "You can't just crank them out at high volume."

Asked about how it decides to grant O-1s, a U.S. Citizenship and Immigration Service spokeswoman said: "USCIS decides each benefit request on a case-by-case basis relying on the law and evidence provided for that case. There are a variety of factors that influence the number of visa applications received and approved from year to year."

Wright says he hopes that one day, immigration reform will make it easier for talented immigrants, especially entrepreneurs, to come to this country. That is a widespread goal in Silicon Valley, where immigrant entrepreneurs have helped start many leading companies. Google Inc co-founder Sergey Brin, for example, came to the United States from the Soviet Union when he was a child.

The immigrant entrepreneurs say that far from taking away jobs, they are creating them by founding companies that may go on to employ hundreds or even thousands of people.

They have managed to find allies even among the harshest critics of H-1Bs.

"The O-1 is one of the few visas we support," said Kim Berry, a spokesman for the Programmers Guild, which favors the suspension of the H-1B program. "When they need to bring in the best and the brightest and the entrepreneurs, that's the only visa that helps America."

Indeed, efforts to make it easier for educated and enterprising foreigners to stay in the United States generally enjoy bi-partisan support in Washington. The complicated status of the immigration issue as a whole, though, has blocked any changes.

"The issue is pretty well understood," said Steve Case, the founder of AOL and now head of the venture capital firm Revolution LLC. "But there is this skepticism around the politics of immigration."

Thus the O-1 will probably remain a key channel for many immigrant entrepreneurs - and it does carry some additional side benefits.

British-born Scott Allison, co-founder of a software company called Teamly, was returning to the United States earlier this month and enjoyed a rare welcome from customs officials after they caught a glimpse of his new O-1 visa.

"'Wow, you must be really awesome,'" he recalls one commenting before waving him through. "I'm like, 'Gee, thanks.'"

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Reuters: Private Equity: UPDATE 1-3i cuts jobs and offices in bid to improve

Reuters: Private Equity
Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com
UPDATE 1-3i cuts jobs and offices in bid to improve
Jun 29th 2012, 06:37

Fri Jun 29, 2012 2:37am EDT

* 3i to cut over 160 jobs, more than one third of staff

* Suspends new investment in southern Europe, Asia

* Closing six offices, cutting jobs at six more

By Simon Meads

LONDON, June 29 - Private equity firm 3i is cutting jobs and closing offices in a move it hopes will help turn around its ailing performance and repair its tarnished reputation.

The cuts are part of new strategy being put in place by former Greenhill banker Simon Borrows, who took over the top job at 3i last month.

The plans will see 3i cut over 160 jobs, equating to more than a third of its staff, as it seeks to reduce annual operating costs by over 40 million pounds ($62 million).

The cuts are designed to assuage shareholders, including Laxey Partners, which have voiced their dissatisfaction with ongoing performance and have called for more money to be funnelled back to them through company sales.

The cuts will see 3i suspend new investments in southern Europe and Asia, but retain a focus on northern Europe and a growing presence in Brazil.

Under the plans, 3i will close its offices in Barcelona, Birmingham, Copenhagen, Hong Kong, Milan and Shanghai and make significant reductions in staff numbers at another six offices.

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Thursday, June 28, 2012

Reuters: Private Equity: FEATURE-U.S. 'Genius' visa attracts entrepreneurs and Playmates

Reuters: Private Equity
Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com
FEATURE-U.S. 'Genius' visa attracts entrepreneurs and Playmates
Jun 29th 2012, 05:00

By Sarah McBride

SAN FRANCISCO, June 29 | Fri Jun 29, 2012 1:00am EDT

SAN FRANCISCO, June 29 (Reuters) - Shera Bechard, the Canadian-born former girlfriend of Playboy Enterprises founder Hugh Hefner, would not be an obvious candidate for the special visas that the U.S. government reserves for "individuals with extraordinary ability."

Playboy magazine named Bechard Miss November in 2010, and she also started an online photo-sharing craze called "Frisky Friday." Neither seems quite on the level of an "internationally recognized award, such as a Nobel Prize," which the government cites as a possible qualification.

But Los Angeles immigration lawyer Chris Wright argued that Bechard's accomplishments earned her a slot. The government ultimately agreed.

That kind of success has put Wright on the map as the go-to visa fixer for both Hollywood and Silicon Valley. It also highlights the use of so-called genius visas known as O-1s and EB-1s, which have largely escaped political controversy and are now the immigration solution of choice for many entrepreneurs.

As many immigration lawyers see it, the paucity of immigration options for the most entrepreneurial foreigners mean they must use any avenue they can. This approach, along with seeming flexibility in Washington on what constitutes "extraordinary ability," means the O-1 is gaining traction in technology circles. Wider use could ultimately land it in political trouble.

For example, the H-1B visa, which allows employers to hire foreigners temporarily in certain specialized fields like technology, has drawn accusations from union groups and others that companies use it to bring in lower-skilled labor.

The O-1 visa allows individuals of "extraordinary ability" to come to the United States for up to three years, and can be extended. British journalist Piers Morgan used one when he replaced Larry King on his late-night TV show, Wright said.

The EB-1 is similar, but leads to a green card and permanent residency rather than a temporary stay, with "extraordinary ability" being one of the ways to qualify - along with being an outstanding professor or researcher, or a multinational executive.

Foreign entrepreneurs have another option - the Immigrant Investor Program, or EB-5 visa - but it requires a capital investment of at least $500,000 and the creation of at least 10 full-time jobs for U.S. workers.

By contrast, no proof of personal wealth or investment in the United States is required for the O-1 or the EB-1.

There is also no cap on the number of O-1s that the government can award each year; about 12,280 were approved in 2011, U.S. Citizenship and Immigration Services said, up from 9,478 in 2006. It issued about 25,000 EB-1s last year, below their cap of 40,000.

The H-1B is much more popular. Applications hit their annual cap of 85,000 earlier this month.

FALLBACK POSITION

While high-profile artists and entertainers have long used the O-1s, they are now becoming a fallback for businessmen and technologists who cannot get H1-Bs.

Josh Buckley, a 20-year-old British-born entrepreneur and a client of Wright's, is among the new crop of Internet entrepreneurs to win an O-1 visa. He applied after starting a few small companies, including one he sold at age 15 for a sum reaching the low six figures, he says.

He got his O-1 last year after lining up letters of recommendation from luminaries including Netscape co-founder and venture capitalist Marc Andreessen and Apple Inc co-founder Steve Wozniak.

Buckley, whose MinoMonsters gaming company is backed by Andreessen, saw little choice other than the O-1. The H-1B was off limits because it usually does not go to people who work for themselves. The O-1, unlike most H-1Bs, also does not require a college education--a key feature for the ever-younger entrepreneurs flocking to Silicon Valley.

Except when it comes to the O-1, visa officials "just don't understand the concept of someone being skilled without 12 years of experience or a bachelor's degree," says John Collison, a 22-year-old Irishman. He dropped out of Harvard University to work on Stripe, the payments company he co-founded with his brother, Patrick.

Like Buckley, he met Wright through the prestigious Silicon Valley start-up incubator known as Y Combinator. He won his O-1 in December 2010 and now has permanent residency status-- as does Buckley.

Wright, himself a South African immigrant, dismisses the notion that some of his clients might not rise to the level of "extraordinary ability."

"There's nothing in those regulations that requires you to be a genius," he says. "It's quite condescending to say, 'Oh, the idiot Playboy Playmates, they don't qualify.'"

At the end of 2010, Bechard posted the first "Frisky Friday" photo on the Twitter microblogging service. Now young women all over the world tweet scantily-clad pictures of themselves on Fridays, with Playboy selecting a weekly winner.

Immigration officials "want to give (a visa) to someone who shows business skills," Bechard says. She also threw in such qualifications as her role as a mute Russian in a 2009 movie, "Sweet Karma," which won her a best actress award at the cult Fantastic Film Festival in Austin, Texas.

QUALIFICATION QUESTION

Many of Wright's young technology clients have had limited time to show they have "risen to the very top of the field of endeavor," as O-1 regulations state.

But quality rather than longevity is the key, Wright says. USCIS rules require extraordinary ability -- demonstrated by "sustained national or international acclaim" -- that he says his clients can prove with awards and testaments from leading players in their field.

The visas are "a lot of work," he said. "You can't just crank them out at high volume."

Asked about how it decides to grant O-1s, a U.S. Citizenship and Immigration Service spokeswoman said: "USCIS decides each benefit request on a case-by-case basis relying on the law and evidence provided for that case. There are a variety of factors that influence the number of visa applications received and approved from year to year."

Wright says he hopes that one day, immigration reform will make it easier for talented immigrants, especially entrepreneurs, to come to this country. That is a widespread goal in Silicon Valley, where immigrant entrepreneurs have helped start many leading companies. Google Inc co-founder Sergey Brin, for example, came to the United States from the Soviet Union when he was a child.

The immigrant entrepreneurs say that far from taking away jobs, they are creating them by founding companies that may go on to employ hundreds or even thousands of people.

They have managed to find allies even among the harshest critics of H-1Bs.

"The O-1 is one of the few visas we support," said Kim Berry, a spokesman for the Programmers Guild, which favors the suspension of the H-1B program. "When they need to bring in the best and the brightest and the entrepreneurs, that's the only visa that helps America."

Indeed, efforts to make it easier for educated and enterprising foreigners to stay in the United States generally enjoy bi-partisan support in Washington. The complicated status of the immigration issue as a whole, though, has blocked any changes.

"The issue is pretty well understood," said Steve Case, the founder of AOL and now head of the venture capital firm Revolution LLC. "But there is this skepticism around the politics of immigration."

Thus the O-1 will probably remain a key channel for many immigrant entrepreneurs - and it does carry some additional side benefits.

British-born Scott Allison, co-founder of a software company called Teamly, was returning to the United States earlier this month and enjoyed a rare welcome from customs officials after they caught a glimpse of his new O-1 visa.

"'Wow, you must be really awesome,'" he recalls one commenting before waving him through. "I'm like, 'Gee, thanks.'"

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Reuters: Private Equity: Nestle Australia sells Peters Ice Cream to PEP

Reuters: Private Equity
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Nestle Australia sells Peters Ice Cream to PEP
Jun 29th 2012, 05:44

MELBOURNE, June 29 | Fri Jun 29, 2012 1:44am EDT

MELBOURNE, June 29 (Reuters) - Nestle Australia Ltd said it has agreed to sell its Peters Ice Cream business to Australia's largest private equity firm, Pacific Equity Partners, for an undisclosed sum.

Reports earlier this year said bids for the business could top A$300 million ($305 million) based on pretax earnings of about A$25 million in 2011.

Peters, a 105-year-old company, has top-selling brands including Drumstick, Heaven and Frosty Fruits.

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Reuters: Private Equity: UPDATE 1-Fushi Copperweld to be taken private in $364 mln deal

Reuters: Private Equity
Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com
UPDATE 1-Fushi Copperweld to be taken private in $364 mln deal
Jun 28th 2012, 22:41

Thu Jun 28, 2012 6:41pm EDT

June 28 (Reuters) - Chinese wire maker Fushi Copperweld Inc said it has agreed to be taken private by a group led by its co-chief executive, in a deal valuing the company at about $364 million.

Co-CEO Li Fu and private equity firm Abax Global Capital will pay Fushi shareholders $9.50 per share in cash, a 21 percent premium to the stock's Thursday close.

Fu, Abax and their affiliates currently own about 29 percent of the company's stock.

Fushi said the deal, which has no financing condition, was approved by the board following the recommendation of its Special Committee.

Fu and his affiliates had initially offered to buy the company in 2010. The company rejected a revised offer in December last year.

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