Sunday, April 22, 2007
The proposed LBO of Sallie Mae by two investment banks and two private equity firms was the big news story, with a number of interesting angles. The LBO illustrates the big money that can be made from students who need to finance their education, something that many find unseemly particularly as the conflicts of interest between the industry and universities continue to be investigated. The LBO also shows that private money is moving into regulated industries.
Another LBO was in the news: institutional shareholders of Clear Channel Communications have expressed displeasure at the offered price, and in response, this week the bidders raised the price to $39 and said this was their final offer. The shareholders want $40 per share. The vote has been postponed to allow shareholders time to vote.
Finally, Joseph Nacchio, former CEO at Qwest Communications, was convicted on nineteen counts of inside trading.