Wall Street Folly

Tags: Brazil, CNBC, Real Estate, Sam Zell, Videos

Bloomberg TV interviewed the always candid Sam Zell earlier today.   We still think he’s one of the smartest guys in the room, Tribune clinker purchase nothwithstanding:

On looking back at the purchase of the Tribune company:

DEIRDRE BOLTON (Bloomberg): Can we ask you if you regret this decision? Is this the worst business decision you ever made?

SAM ZELL: It’s certainly the most amount of money I’ve ever lost in a single deal. But the answer is -

BOLTON: So if you could turn back time….

ZELL: If you could. It’s like maybe I should have married somebody else.

Note: embedding has been disabled, you have to watch it at Youtube

Tags: Activists, Bankruptcy, Sam Zell, Tribune

FINalternatives has culled through the Forbes list for all of the alternative investment guys who are represented.  Notably missing: Allen Stanford.  Here's the list:

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Tags: Allen Stanford, Avenue Investments, Bruce Kovner, Carl Icahn, Citadel, DE Shaw, Eddie Lampert, George Soros, Harbinger, Hedge funds, Henry Kravis, Highbridge, Jim Simons, Leon Black, Private equity, SAC Capital, Sam Zell

In a developing story, Illinois Governor Rod Blagojevich is in scalding hot water this morning, having been arrested for what appears to be a variety of pervasive corruption related charges, including attempting to financially benefit from the Senate vacancy left by Obama's presidential victory.  He's also charged with making various threats to the Tribune,  which filed bankruptcy yesterday….

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Tags: Bankruptcy, Barack Obama, corruption, Illinois Governor, law suit, Legal, Politics, Rod Blagojevich, Sam Zell, Tribune

Sam Zell must be smiling:  A Cerberusless group that includes Vornado, Starwood and Walton Street Capital has upped the ante for Equity Office Properties setting up a bidding war for the company:

Vornado Realty Trust, Starwood Capital Group Global LLC and Walton Street Capital LLC offered about $21.6 billion for Sam Zell’s Equity Office Properties Trust, topping a $20 billion bid from Blackstone Group LP.

The $52-a-share offer, worth $37.6 billion including debt, will be 60 percent in cash and 40 percent in Vornado shares, Vornado said in a statement. Blackstone bid $48.50 a share in cash for Equity Office, the biggest U.S. office landlord, in a deal worth $36 billion with debt. Blackstone said Vornado’s offer was inferior because its value depends on Vornado’s share price.

“A tentative proposal relying upon the potential issuance many months from now of more than $10 billion in stock trading at near record prices is inferior,” Blackstone spokesman John Ford said. It “carries vastly more risk than Blackstone’s all cash deal closing in approximately two weeks.”

Vornado Group Offers $21.6 Billion for Equity Office – Bloomberg

Tags: Sam Zell

Would you want to be on the other side of a trade that Sam Zell makes?  For years we’ve watched him and his near perfect timing get the best of just about everyone who trades against him.  He doesn’t give money away.  Now Blackstone is buying Zell’s Equity Office Properties Trust in a deal, including existing debt, which is worth $36 billion — the largest LBO in history if it gets done.  While we don’t know which side made the better deal, certain big winners are Merrill Lynch, who’s advising Equity Office, and Goldman, Bank of America, Morgan Stanley and Bear Stearns who are advising Blackstone.

Equity Office shareholders will receive $48.50 a share, 8.5 percent more than Friday’s closing price, the companies said in a statement yesterday. Including debt, the transaction is worth $36 billion, exceeding this year’s $33 billion purchase of hospital chain HCA Inc. to become the biggest leveraged buyout in history.

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Tags: Bank of America, Bear Stearns, Blackstone, Goldman Sachs, Merrill Lynch, Morgan Stanley, Sam Zell