Filed under: Options, Deals, Madison Dearborn Partners, Providence Equity Partners, Engagements

BCE Inc. (NYSE: BCE), Canada’s largest telecommunications company, announced on June 30, 2007, that it agreed to be acquired by an investment arm of Ontario Teachers’ Pension Plan, Providence Equity Partners and Madison Dearborn Partners for an announced deal price of $42.75 per share. The Federal Communications Commissions cleared the deal on Dec. 20.

RBC Capital says, “Financial results were in-line with expectations . . . there was nothing in the release that should worry investors in the context of the pending privatization.” BCE June option implied volatility of 53 is above its 26-week average of 34 according to Track Data, suggesting larger movement.

M&A Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

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Filed under: Deals, The Blackstone Group, Financials and analyticals, Private equity industry, Investments, Value and lack thereof

The Blackstone Group L P (NYSE:BX) has announced the closing of three newly created collateralized loan obligation funds totaling $1.3 billion. Those CLO’s are trading again. These were all created over the past month, and these are just the CLO’s that Blackstone participated in.

In March, Blackstone merged its existing CLO group with the team from its newly acquired GSO Capital Partners. This 35 person CLO team has offices in New York and London. The combined CLO group now manages $14 billion across 26 funds in the US and Europe.

This shows a breakdown in the actual amount per CLO, compares it to Q1 and to 2007, and it even puts the lower volume blame now on the lack of AAA rated part needed for each CLO.

Interestingly enough, Blackstone shares are up almost 50% from their post-IPO lows.

Continue reading the full story and spot analysis at 247WallSt.com.

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Filed under: Deals, Management, Engagements, Shareholders, Public or private?

Some companies get it, some don’t. Circuit City Stores, Inc. (NYSE: CC) has been in the camp of companies that don’t get it. That may have finally changed today.

The company appears to have finally capitulated and realized its days under its own efforts may be limited. There are two separate announcements this morning, but in reality it is all part of the same issue.

This will allow the company to deal with the activist pressure, and may ultimately lead to the company either being run by a better team or become a subsidiary of another company. The company just issued a release that it has reached an agreement with Wattles Capital Management.

Blockbuster Inc. (NYSE: BBI) and Carl Icahn may finally get their way.

Keep reading the full story at 247WallSt.com.

Jon Ogg is also a producer and editor of the “10 Stocks Under $10″ weekly newsletter for 247WallSt.com.

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Filed under: Management, Movers and shakers, Engagements, Private equity industry

Private equity firm Behrman Capital has announced that General Peter Pace, retired USMC and former Joint Chiefs of Staff Chairman, took the role as Operating Partner with the firm. General Pace was also named as Chairman of the Board to Pelican Products, an advanced lighting systems and valuable equipment case manufacturer. He will also direct ILC Industries, Inc., a company that provides defense electronics (of course the defense angle).

Grant Behrman of the firm noted that General Pace has forty years tenure in the Marines and then as Chairman of the Joint Chiefs of Staff. Pace graduated from the U.S. Naval Academy and has an MBA from George Washington University.

Behrman Capital is a private equity investment firm with more than $2 billion of capital under management and it invests in management buyouts, leveraged “buildups” and recapitalizations of established growth companies. If you look through the private equity firm’s portfolio companies, you can see why having a former general and Joint Chiefs of Staff Chairman would be a good thing.

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Filed under: Deals

It looks like the latest round of rumors that Dell Inc. (NASDAQ: DELL) is considering buying RadioShack Corp. (NYSE: RSH) are not only untrue, but probably stirred up by some unhappy shareholders of the 109-year-old consumer electronics retailer.

“I don’t see any strategic buyers for RadioShack,” said Anthony Chukumba, an analyst with FTN Midwest Securities who predicted a Dell acquisition is “highly unlikely.” While Dell has made some uncharacteristic moves over the past year, like signing a deal last May to sell its personal at Wal-Mart Stores Inc. (NYSE: WMT) and other big-box retailers, Chukumba says the idea of buying any retailer outright, let alone the struggling RadioShack, does not calculate.

“They would completely anger their partners,” said Chukumba, who added that RadioShack’s mostly small, mall-based stores are impractical for displaying an extensive line of Personal computers. “RadioShack is becoming less and less relevant as a consumer electronics retailer. I think they’ll just continue to drift along.”

Continue reading at TechConfidential.com.

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Filed under: Deals, The Blackstone Group, Engagements

There’s been quite a bit of drama with the The Blackstone Group L.P. (NYSE: BX)’s proposed $6.4 billion buyout of Alliance Data Systems Corporation (NYSE: ADS). In fact, in January, ADS filed a lawsuit against Blackstone, but it was quickly dropped.

However, things got a little easier yesterday, according to a piece in the Wall Street Journal. That is, the Office of the Comptroller of the Currency said it will place a cap on the liability for Blackstone if ADS’s credit card segment implodes (up to $400 million). Hey, in light of the turbulence in the financial markets, this is certainly a material issue and should be a relief for Blackstone.

Of course, there are still other issues, such as the credit crunch and the slowing economy. Such things make it difficult to justify a deal for ADS.

Yet, in today’s trading, ADS’s shares spiked 17% to $52.22. Then again, the buyout offer is still at a hefty $81.75. In other words, the Street thinks that — if this deal gets done — expect a much lower price.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates DealProfiles.com.

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Filed under: Deals

Sprint (NYSE: S) may have found a buyer. The interested party is German phone giant Deutsche Telekom NYSE: DT). DT owns the fourth largest cellular carrier in the US. Sprint has the third largest network, but has struggled to keep subscribers since it bought rival Nextel.

Sprint’s shares are trading at $7.81 down from $25 less than two years ago. The firm has had financial troubles because of customers losses and has fallen well behind AT&T (NYSE:T) and Verizon Wireless. Combining Sprint and T-Mobile would create a strong, third competitor in the US market.

Sprint has no solution to building out a 4G network that will allow it to remain competitive a less than a decade from now. Its plans to spend $5 billion on a national WiMax grid have been slowed and perhaps killed by the company’s financial and operational problems.

Continued at 24/7 Wall St.

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Filed under: Deals

Rainbow Media Holdings, a Cablevision Systems Corporation (NYSE: CVC) programming subsidiary, announced today that it will acquire 100% ownership of the Sundance Channel. Sundance is currently owned by NBC Universal, which is owned General Electric (NYSE: GE), and Showtime Networks, which is owned by CBS Corporation (NYSE: CBS), as well as various entities controlled by Robert Redford.

The exchange will be valued at approximately $496 million and consists of a tax-free exchange of 12.7 million GE shares held by Rainbow and given to General Electric and cash given to CBS and Redford entities for their interests.

Sundance began in 1996 under the direction of Robert Redford, with the goal of creating a channel that brings dedicated viewers while promoting artistic freedom of expression through various films, series, and documentaries. It now reaches some 30 million subscribers and with the acquisition, Sundance will join Rainbow’s portfolio of channels, including AMC, IFC and WE.

Jon Ogg produces and edits the Special Situation newsletter for 247WallSt.com.

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Filed under: Deals, Engagements

The deadline Microsoft Corp. (NASDAQ: MSFT) imposed on Yahoo! Inc. (NASDAQ: YHOO) to come to terms on an acquisition before it moved into hostile takeover mode has come and gone, but now it appears the software maker may be taking a softer line.

Or maybe not. The Wall Street Journal reported late Wednesday that the boards of both companies met Wednesday in an attempt to reach an agreement on Microsoft raising its bid in lieu of going hostile.

At the same time, the Journal also reported that Microsoft CEO Steve Ballmer and its financial advisers had been lobbying Yahoo! shareholders to rally support for the company to accept a lower price.

Continue reading at TechConfidential.com.

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Filed under: Deals

Shares of both Sirius Satellite Radio (NASDAQ:SIRI) and XM Satellite Radio (NASDAQ:XMSR) are trading higher in pre-market trading today. You could say it is the market, but it could also be tied to a letter that went out the FCC. House Commerce Chairman Dingell (D-MI) and Telecommunications Subcommittee Chairman Markey (D-MA) sent a letter to FCC Chairman Martin calling for an “Open Device” condition should the FCC approve the merger.

The letter sent to Chairman Martin also calls for an adherence to “at least” the pricing structure and pricing locks that have been already shown.

The stated goal of the letter is consumer protection.

Continued at 24/7 Wall St.

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