The S&P 500, slipping. The index closed at 1,545.8, a 0.8 per cent decline. Shares in Oracle fell 9.7 after yesterday's earnings disappointment (Bloomberg).
Blackstone is considering a bid for Dell. Friday marks the end of a 45-day window to make counter-offers to Michael Dell's proposal to take the company private for $24.4bn. Blackstone is considering "several different scenarios" for buying all or some of Dell, including negotiating with Southeastern Asset Management, a large Dell shareholder, to roll over its stake in a possible deal (Financial Times). The private equity has also talked with GE Capital about a bid for Dell's financial services unit (Wall Street Journal).
Cyprus made plans to restructure Laiki, its second-biggest bank, as the latest step to convincing official lenders to approve a bailout. The plan would separate Laiki into good and bad banks, with large uninsured deposits transferred to the latter. Deposits up to €100,000 would be guaranteed, the central bank governor said (Financial Times). The Eurogroup urged Cyprus to present its plan "as rapidly as possible" (Eurogroup statement). Officials are likely to demand Cyprus has a plan to recapitalise its other large bank, Bank of Cyprus, even if Laiki is resolved (Wall Street Journal).
Raj Rajaratnam's brother was charged with insider trading. Manhattan US Attorney Preet Bharara said that Rengan Rajaratnam was accused of conspiring with his brother to seek access to insider information on Clearwire and Advanced Micro Devices in 2008 (Bloomberg). Rengan Rajaratnam has been living in Brazil, and it was unclear if extradition proceedings would be launched by US officials (Wall Street Journal).
Hedge funds cheer 2013 for strongest returns in years -- so far: Landsdowne's flagship fund is up 7.75 per cent for the year so far and Odey is up 11.5 per cent, as equity long/short strategies thrived back into life (Financial Times).
FURTHER FURTHER READING
- The 371 per cent return bond fund manager.
- Dell meets Ronald Coase.
- Synthetic and private-label securitisation, the (safer) comeback.
- Worrying trends in US inequality, seen via tax returns.
- Inside an "odd bond offering".
