Tuesday, 23 September 2014
Last updated 4 hours ago
Jul 1 2014 | 8:24am ET
A Kohlberg Kravis Roberts portfolio company has agreed to pay $29 million to settle allegations that it accepted an unreasonably low bid from the private-equity company last year.
Industrial pumps-maker Gardner Denver struck the deal with its former shareholders after two days of talks. The company’s former owners had sued the company and KKR, alleging that the latter used confidential information it received from former Gardner Denver CEO Barry Pennypacker, whom it hired as a consultant in 2012, in violation of Pennypacker’s severance deal.
The former shareholders noted that KKR’s code name for the Gardner Denver deal was “Project Bootcamp,” apparently a play on the name of fitness company “Barry’s Bootcamp.” In addition, KKR allegedly offered Pennypacker a $1 million bonus if its bid proved successful.
KKR, which paid $3.7 billion for Gardner Denver after a rival deal fell through, denied that Pennypacker divulged confidential information. The firm added that his advice did not cause it to offer less for Gardner Denver.
The settlement amounts to less than a 1% increase in the $76 per share KKR paid. Up to one-third of the total settlement is expected to go to the former shareholders’ lawyers. The deal, disclosed in a court filing Friday, still requires a judge’s approval.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitich, CIO of Petty Endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.