Text size [+][-] Monday May 12 2008GLOBAL EDITION
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The megabank’s boss reckons he can succeed where his predecessors failed and finally reap the benefits of the 1998 tie-up. Trouble is, results could take several years. But at least he has given shareholders ideas on how to measure his progress, so they can judge him accordingly.
The Blackstone boss has more than once compared the US mortgage crisis to WW2 Japan. The insensitivity won't help the firm there. But Wall Street and Washington - where his earlier actions put the whole private equity industry in the doghouse - now have much bigger concerns.
Recovery from the current wave of resignations, redemptions and poor performance won’t be easy. But the US-listed hedge fund group has been here before with Philippe Jabre – arguably a bigger star than Coffey. And GLG’s listed equity and strong distribution should help.
The £4bn listing of Fresnillo, a Mexican miner, squeaked through at the bottom of its price range after silver prices fell sharply. The precious metal is a quirky reminder that speculative fever can cool almost as quickly as it ignites.
The Spanish construction group and its co-investors will have to fork out another £400m of equity to support a mammoth £10bn refinancing of BAA debt. Even this may not be enough to win over some hedge funds. But the good news is that the refinancing might now actually get done.
Art market pundits are concerned with the effects of global financial woes. But recent auctions show the key to success.
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