Hedge Fund Reader : Hedge funds bow down to the final offer of C&W; to win Energis

Comments

August 22, 2005

Hedge funds bow down to the final offer of C&W; to win Energis

Several Hedge funds had shown their unhappiness over the amount that C&W has been offering for acquiring Energis. So much so, that they were trying to stop the deal from taking place altogether. But according to latest reports, C&W seems to have garnered enough support to facilitate the takeover. Apparently the protesting hedge funds were made to realize that if C&W walked away from the deal, there were no other takers. This would ultimately lead to collapse of their stakes. The hedge funds had been protesting against the amount being offered, saying that it was too low taking into account the ultimate benefits that C&W would derive after the merger. However, C&W which had increased its offer from $500 million to $ 780 million declined to further raise this amount. They stated that this was their final ‘take-it-or-leave-it’ offer and the unhappy funds had to cave in to the demands. Forbes.com reports:

“According to the The Independent, Energis has been piling pressure on the hedge funds holding out, but said it expects enough to cave in by the deadline, citing sources close to the talks”

--
Did you enjoy this post?

August 22, 2005 in Gossip & Scandal | Permalink