Another extension in Compuware’s talks with hedge fund (Freep)
Detroit-based Compuware Corporation (NASDAQ:CPWR) and an activist New York hedge fund apparently will continue their private merger and acquisition talks for several more months. The business software maker and Elliott Management disclosed today that they agreed late last week to a second extension to Sept. 15 on a standstill agreement which, among other things, prohibits the hedge fund from making buyout offers or revealing nonpublic information about Compuware Corporation (NASDAQ:CPWR). The agreement originally took effect Feb. 14 and was later extended from mid-May to today.
Dell investors should take the money and run (MarketWatch)
This offer looks like a no-brainer, at least to me. Dell Inc. (NASDAQ:DELL) -1.31% likely has years of grueling work ahead of itself to transform the business into something resembling a growth engine again — if it can do so at all. And that work is not going to make the company’s financial results in the interim look attractive to any but a gambling investor with a taste for big risks. The rationale for keeping the company public now also has another major flaw that’s not been frequently noted — Wall Street’s current low valuation of other tech hardware firms, even those with strong businesses. When companies like Apple Inc. (NASDAQ:AAPL) +0.22% and EMC Corporation (NYSE:EMC) +1.32% can only command discount valuations, what are the chances that investors will give any sort of break to Dell Inc. (NASDAQ:DELL)?
Hedge funds spot opportunities in Poland sell-off (Reuters)
Hedge funds are betting against Poland’s sovereign bonds and currency, taking advantage of a sell-off in emerging markets and slowing domestic growth to target a country that has been a top pick for foreign investors. The European Union’s biggest ex-communist country has been viewed by many investors in recent years as the star of the new EU members, with 10-year bond yields – the most popular paper among foreigners – roughly halving since joining the bloc in 2004. …”I don’t like the zloty at all. In the hedge fund we’re short,” said Andy Seaman, partner at London-based Stratton Street Capital, which has $2 billion under management across its portfolios.
Hedge funds ads allowed in Canada, but not favoured (TheGlobeAndMail)
Hedge funds may soon launch multimedia advertising campaigns in the United States, but don’t expect the trend to migrate north of the border any time soon. Last week, the Securities and Exchange Commission, the U.S. federal securities regulator, voted to end a decades-old ban on marketing hedge funds and other private investment funds to a broad audience. The move is expected to make it a bit easier for startups to gain funding, as outlined well by Wired.
John Paulson’s telecom picks take an even bigger Leap (CNBC)
When John Paulson founded his eponymous hedge fund company in 1994, his focus was merger arbitrage. Now, with a two-decade track record and one massive win in his credit strategy, he’s again finding luck with his original investing style—and with telecommunications in particular. So far this year, Paulson has won big on the mobile carrier SoftBank Corp.’s $21.6 billion controlling investment in Sprint Nextel Corporation (NYSE:S), a deal in which he lobbied successfully for a higher price and a bigger cash component. He’s improved his returns from MetroPCS’s sale to the T-Mobile unit of Deutsche Telekom by demanding better terms and less debt. And in the wake of news late Friday that AT&T Inc. (NYSE:T) planned to take over Leap Wireless in a $1.2 billion cash deal—valuing the prepaid wireless provider at 88 percent above its share price at that time—Paulson appears primed to make even more from his telecom holdings.