Lurking SS&C Drives GlobeOp Share Price

Feb 14 2012 | 1:35pm ET

TPG Capital is doing what it can to present its planned purchase of GlobeOp Financial Services as a fait accompli, but investors aren't buying it.

The private equity firm's bid for the hedge fund administrator is a 50% premium to GlobeOp's share price the day before the deal was announced. But shares are now trading well in excess of that, after SS&C Technologies last week urged GlobeOp shareholders not to tender their shares until it has a chance to make an offer of its own.

TPG said yesterday that it won irrevocable support for its US$800 million deal from shareholders owning 36.75% of GlobeOp shares. TPG itself owns a 5.2% stake.

But analysts suggest that SS&C, in which The Carlyle Group holds a 36% stake, could pay more for GlobeOp due to better synergies with the company. "It's entirely possible we could see SS&C coming in and then TPG having to come back and pay more," JO Hambro's Mark Costar told Bloomberg News. "The TPG bid is opportunistic and significantly undervalues the company."

Oriel Securities predicts that a bidding war between SS&C and TPG could push the premium paid for its shares to 75%.


In Depth

Q&A: George Schultze On His Fund's Unique Approach to Distressed Investing

Apr 16 2015 | 1:01am ET

George Schultze is a managing member of Schultze Asset Management, a long/short...

Lifestyle

Puerto Rico Woos The Rich But So Far Gains Little

Apr 17 2015 | 2:45am ET

Hedge fund manager Rob Rill grins. He has just had word that U.S. financial regulators...

Guest Contributor

Minnesota Supreme Court Rejects The Ponzi Scheme Presumption: Lenders Claw Back Some Of Their Own Rights

Apr 17 2015 | 9:23am ET

A recent court ruling in Minnesota has put an end to the Ponzi Scheme Presumption...

 

Editor's Note