September 17, 2005

Hedge Funds want to join the rain dance with the Peacock

After lending £800 million to the US tycoon Mr. Malcolm Glazer for his increasing his stake from being a minority share holder of Manchester United to its controversial takeover. Och-Ziff Capital along with a consortium of six specialist funds in assistance with investment bank Goldman Sachs, the new target sought is Peacock, a UK based enterprise. The consortium has offered £400 million to take the company from public to private. The hedge funds are replicating the US prevalent trend of taking companies from public to private in the UK. However their involvement in British takeovers has thus far been restricted to providing debt in such cases. The times are getting tougher for the hedge funds to churn out returns as in the past and therefore have to be on the constant lookout for new avenues to drive up results. Thisismoney.co.uk Reports:

Investment bankers, however, are predicting that more public-to-private deals in the UK could be hedge fund-backed, simply because more deals are being done that way in the US. It is thought many hedge funds are also looking increasingly to find other ways of using the cash piles they have built up to sustain the high returns promised to their investors.

Read More: Peacock approach a first for hedge funds

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September 17, 2005 in Gossip & Scandal, Strategy | Permalink




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