BEA 4th Quarter GDP 1st Estimate 0.7% Q&A: Why Did GDPNow...

BEA 4th Quarter GDP 1st Estimate 0.7% Q&A: Why Did GDPNow Rise After Durable Goods? When are Construction Revisions Coming? United Rentals Inc (URI) said on Monday it filed a lawsuit seeking to force Cerberus Capital Management LP to complete its $4 billion leveraged buyout of the equipment rental company. Cerberus pulled its takeover offer of $34.50 per share last Wednesday, a move that sent the rental company's stock down 31 percent on the day. Unlike other broken private equity deals in the last few months, Cerberus is not citing a material adverse change in the business as a reason for backing out. Rather, it is citing uncertainty in the credit and financing markets. United Rentals repeated its assertion that Cerberus had binding commitment letters from its financing sources and that pulling the offer is 'unwarranted and incompatible' with the deal. Audio equipment maker Harman International Industries Inc (HAR) said Kohlberg Kravis Roberts & Co LP and Goldman Sachs Group Inc's private equity arm had pulled out of their $8 billion buyout deal. The leveraged buyout of student loan provider SLM Corp (SLM) or Sallie Mae by JC Flowers and Flowers' banks is being contested in court. Both Cerberus and Flowers are both involved in recent broken deals yet both are involved in bidding for Northern Rock. Let's take a look. Northern Rock said Monday that it had received a number of disappointing takeover proposals, increasing the pressure on the British government to find a solution for the troubled regional mortgage lender and to consider nationalizing it. The government has lent more than?20 billion, or $40 billion, over the past two months to secure deposits at Northern Rock, many of which are pension savings, and to end the first run on a bank in the country since 1866. A sale might help save some jobs but that would risk alienating taxpayers, who might have to continue supporting the business, according to a memorandum by the investment banks managing the sale that was leaked to the media last week. Declared bidders include the private equity firm J. C. Flowers & Company Virgin Group's Richard Branson, who hopes to integrate Northern Rock into its Virgin Money brand the U. S. private equity company Cerberus and Olivant Advisers of London. If credit conditions are so tight that Cerberus has to back out of a relatively piddly deal with United Rentals because of credit conditions, what the heck is it doing bidding on a potential $40 billion Northern Rock deal? The BOE is really in a tight spot here compounded by the fact it lent Northern Rock $40 billion. Proposals are coming in 'materially below' that. The BOE has to make a deal, but all of them look bad. Yes, it's yet another The content on this site is provided as general information only and should not be taken as investment advice. All site content, including advertisements, shall not be construed as a recommendation to buy or sell any security or financial instrument, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of sponsors or firms affiliated with the author(s). The author may or may not have a position in any company or advertiser referenced above. Any action that you take as a result of information, analysis, or advertisement on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.