Paulson Profits From Oil Deal, Seeks T-Mobile-Sprint Marriage

Jul 16 2014 | 3:17pm ET

John Paulson has made a mint on one merger this week, and he’s looking for another.

The New York-based hedge fund is the largest shareholder of Kodiak Oil & Gas, which has accepted a $6 billion offer from Whiting Petroleum Corp., which also boasts Paulson as its largest shareholder. The deal has given Paulson a $360 million paper profit, according to CNBC, amounting to a 41% return.

“This is an exciting transaction,” Paulson said. “It creates the top producer in the fast-growing oil-producing Bakken region of North Dakota.”

With the Kodiak-Whiting deal done, Paulson is turning its attention towards uniting two other portfolio companies: Sprint Corp. and T-Mobile US.

Paulson said that a merger between the two would be good for both shareholders and consumers.

“Clearly competition will increase if you allow them to merge,” Paulson told The Wall Street Journal. “I think regulators will be open-minded.”

He also dismissed a criticism made by other investors that Sprint won’t pay enough for T-Mobile.

“The big value isn’t the premium,” Paulson said. “The big value is the synergies from the deal,” which could amount to annual savings of $3 billion, according to Morgan Stanley.

Paulson is the third-largest Sprint shareholder and the fourth-largest in T-Mobile. The firm was instrumental in pushing the latter to buy MetroPCS Communications last year and SoftBank Corp. to buy Sprint.


In Depth

Steinbrugge: Top 10 Hedge Fund Industry Trends for 2017

Jan 3 2017 | 9:03pm ET

Each year, Agecroft Partners' Don Steinbrugge predicts the top hedge fund industry...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

DarcMatter: The Top Trends in Alternative Investments for 2017

Jan 13 2017 | 8:22pm ET

The $7 trillion alternative investments industry is poised for continued growth...

 

From the current issue of

The U.S. Commodity Futures Trading Commission (CFTC) ordered The Goldman Sachs Group Inc., and Goldman, Sachs & Co. to pay a $120 million penalty for attempted manipulation and false reporting of ISDAFIX Benchmark Rates, a global benchmark for interest rate products.