Mets, Einhorn Back In Exclusive Talks

Jul 22 2011 | 12:14pm ET

What was widely seen as a sweetheart deal to buy a big chunk of the New York Mets for Greenlight Capital's David Einhorn might not be quite so sweet anymore.

Einhorn and the Mets re-entered exclusive negotiations for Einhorn to buy a minority stake in the team, but only after the Mets owners, emboldened by a recent court decision, reached out to several bidders they had previously spurned.

Striking a final agreement has taken significantly longer than the Mets anticipated, keeping from them the $200 million from Einhorn that the cash-strapped and debt-laden team so desperately needs. For what amounts to a loan of that amount, Einhorn would reportedly get one-third of the team and the right to take a majority stake in five or more years if the Wilpons, who currently own the Mets, were unable to repay him.

The Mets and Einhorn continued to talk despite the expiration of his exclusive negotiating window. But the favorable ruling in the Bernard Madoff case, which forced the Mets to seek a minority owner in the first place, led Mets principal owner Fred Wilpon to reach out to some of the bidders it picked Einhorn over.

Wilpon, who said recently he wasn't happy with the deal he reached with Einhorn, met with one of those bidders, former Glencore International trader Ray Bartoszek, at his Long Island home on Wednesday morning. But by Wednesday evening, the Mets issued a statement saying they "are in exclusive negotiations" with Einhorn.

It is unclear what concessions Einhorn may have made to the team.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Controlling With Confidence: A ‘How-To’ For Hedge Fund Managers

Dec 22 2014 | 11:52am ET

Hedge funds are increasingly turning to third party services to help with operations...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.