New York Stock Exchange (NYSE)

Offering watch: Apollo vs. KKR

Jim Kim — Mon, 25 Aug 2008 13:22:26 -0400

Both Kohlberg Kravis Roberts and Apollo Management made headlines when news broke that they were going public after all. They're not abut to stage traditional IPOs. Both will manage to list themselves without selling shares to new investors. Breakingviews notes Apollo is re-listing its private shares, now on GSTrUE, on the NYSE, while KKR will sort of reverse merge with its Amsterdam-listed affiliate and then re-list on the NYSE. Breakingviews gives KKR the nod, noting that affiliate shareholders will get a nice premium for their shares, which may make them more likely to hang onto the stock. But in both cases, eventually the stock will rise and fall with results and expectations. Both could face an embarrassing after-market situation, not unlike the Blackstone Group.

For more:
- here's the article

Related Articles:
KKR to go public after all
Apollo Group to go public

On the hot seat: Merrill Lynch's John Thain

Jim Kim — Fri, 18 Jul 2008 07:58:42 -0400

When John Thain took the top job at Merrill Lynch, we noted that he seemed to be the right man at the right time. With his Goldman Sachs pedigree and NYSE success, there were plenty of people who agreed. But things have changed. The New York Times notes that the firm has lost money four quarters in a row--to the tune of nearly $20 billion. At various points along the way, Thain suggested that the worst was over. But the firm's capital position continued to deteriorate as the issues regarding its exposure to mortgage-backed products proved thornier than anyone expected. No one thinks he's blind to the issues. He's raised more than $15 billion since coming aboard. He may have to raise more. While the bloom is off the rose, he's got a lot of assets than can be sold. If he can get past this, he will have proved himself.

For more:
- here's a New York Times profile

U.S. exchanges face tough times

Jim Kim — Thu, 10 Jul 2008 15:30:47 -0400

There was once a day when we looked to the price of a seat on an exchange as a barometer of the exchange's health. Indeed, Wall Street's health. That seems like a long time ago. Now, we're more likely to simply check out the stock price. Unfortunately, NYSE Euronext and Nasdaq OMX have been tanking of late. Both are down about 50 percent from the start of the year, Business Week notes. The trading volume surge that accompanied the credit crunch has leveled off in a big way. If a true bear market sets in, volume could fall even more. Both companies have worked hard to diversify their sources of revenue, but not to the point that they can offset a big revenue hit from trading volume. The future is thus still an open question. How they grapple with the on-going trend toward electronic trading remains the biggest issue. We'll have a lot more to say on this later.

For more:
- here's the Business Week article

Related Article:
Bulls vs. bears battle breaks out over banks

Grasso wins! Former NYSE chief can keep money

Jim Kim — Wed, 02 Jul 2008 07:54:47 -0400

Dick Grasso's career seemed to be ending on a very sour note: the State of New York was making him something of a poster boy for his gargantuan pay over the years. In an ugly battle, then-New York Attorney General Eliot Spitzer went after Grasso for the $139.5 million he was paid. Along the way, there were hardly flattering portrayals of Grasso, who came across as embittered. But a judge has dropped the few remaining charges against him. So Grasso gets to keep the money after all, which he vowed to do all along. Andrew Cuomo, Spitzer's successor, said he will not pursue the issue.

For more:
- here's the New York Times article

NYSE slashes job again

Jim Kim — Mon, 09 Jun 2008 21:15:56 -0400

It's no secret that NYSE Euronext is looking to pare costs. Financial News Online reports that the global exchange firm has offered 450 of its 1,800 employees in New York buyout packages. That follows some previous job reductions that pushed the head count to 3,200--down from roughly 3,700 a year earlier. Some paring is expected in Europe as well. The exchange business is as competitive as ever, especially in the U.S. At some point, the NYSE won't be able to pare costs anymore. To beat the hordes of low-cost electronic execution venues, it will need to do more. So it has a lot riding on its own ECN initiatives, its war against the Nasdaq and overseas expansion.

For more:
- here's the article

Wall Street can't knock Grasso out

Jim Kim — Tue, 03 Jun 2008 07:17:11 -0400

This seems like it happened a long time ago: Former NYSE chief Dick Grasso was locked in a do-or-die struggle with then state Attorney General Eliot Spitzer over his eye-catching take of $185 million. The New York Times points out that Grasso may have put some kind of curse on his adversaries. Just look at what has happened to Spitzer--a humiliating story to say the least. And then there's Jimmy Cayne and Stanley O'Neal, both whom were on the board that approved much of Grasso's pay and witnessed his fall from grace. The Times says Grasso, who faces a court date this week, has a "a growing chance that he may keep the vast portion of his payout."

For more:
- here's the article

NYSE's SPAC move: Misguided?

Tue, 20 May 2008 06:59:56 -0400

We've spoken a lot about the rise of special purpose acquisition companies, or SPACs. They were all the rage over the past few years, as more top investment banks got involved with them. They were fees to be had, of course. But the deal environment has worsened obviously, and that is making it hard for some SPACs to invest their newly raised funds. Share prices have been under pressure, and there is speculation that some SPACs may have to return funds. So it is interesting to read, in Traders Magazine, that the NYSE's marketing has paid off: A SPAC will move to the Big Board from the Amex. That would mark a first. Some might say the NYSE's marketing efforts are too late, but perhaps the time to make a push is when things are at a trough.

For more:
- here's the Traders Magazine article

ALSO NOTED: Mayo: Lehman still under some pressure; Citigroup forms alternatives group; and much more...

Wed, 07 May 2008 06:59:50 -0400

Company News:
> When to bail on a money manager. Article
> Amex to slash staff? Article
> Citigroup forms alternatives group. Article
> Legg Mason joins crowd, will raise $1 billion. Article
> Wachovia's loss doubles. Article
> State Street office in Poland could employ 1,000. Article
> Mayo: Lehman still under some pressure. Article
> NYSE profits triple. Article
> Level 3 assets at Merill rise. Article

Industry News:
> Oil prices blast higher. Article

Regulatory News:
> Mortgage probe intensifies. Article
> Merrill cooperating with auction rate probe. Article

And Finally... 10 ways to avoid travel cancellation fees. Article

Can John Thain turn Merrill Lynch around?

Thu, 17 Apr 2008 06:59:57 -0400

John Thain, Merrill Lynch's savior? Not so fast. Portfolio magazine weighs in with a long profile of Thain, the former Goldman Sachs executive who capably ran the New York Stock Exchange before arriving as CEO of Merrill Lynch. He's undergoing a baptism by fire, as he tries to navigate the firm through this thorny credit crisis. He's known as a dry technocratic sort, and the piece was meant (his PR staffer hopes) to humanize him a bit. Which it did. But he will need more than a "charm offensive" to get through this and realize his longer term goal of making Merrill Lynch more like Goldman Sachs, which in his mind doesn't mean willy-nilly use of the balance sheet. A great profile if you have time for it.

For more:
- here's the profile

Apollo Group to go public

Thu, 10 Apr 2008 06:59:57 -0400

You would have thought, in part because of the performance of the Blackstone Group in the aftermarket, that private equity firms that wanted to go public had given up on the idea. But the Apollo Group, run by Leon Black, remains bent on listing itself on the NYSE. It has filed for an IPO, aiming to raise $475 million, notes the New York Times. The firm's buyout fund apparently has delivered average annual returns of nearly 30 percent through the end of 2007. But it's taking a bath right now with some of its portfolio companies. Some will argue that there is wisdom in going public at the worst time, in that there's nothing but upside. You can bet other private equity giants are thinking much the same.

For more:
- here's the New York Times item

Related Articles:
Visa IPO a gravy train for top banks. Visa article
Benefits of private equity firm IPO are clear. IPO article
Buyout firms invest in own debt. Buyout firms article
Leon Black suffers most among PE kings. Leon Black article